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Dixons demands tax relief on computer products

...as OFT officially opens PC pricing enquiry

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Dixons has suggested the government relax taxes on computers. The call comes after the Office of Fair Trading (OFT) yesterday launched its investigation into PC pricing. John Clare, the Dixons Group's chief executive, said he welcomed the enquiry, but suggested the UK government might follow other countries and offer tax relief on computer prices. Clare added a sting in the tail, advising that any study should "also include an assessment of the role of microprocessor and other component suppliers, such as Intel". Singling out Intel as an example came as no surprise, since it was claims made by Intel CEO Craig Barratt that Dixons was making "ridiculous margins" on PCs and damaging computer sales in the UK that prompted the current concern over the retailers pricing policy. John Bridgeman, director-general of Fair Trading, started the investigation following the intervention of Peter Mandelson, trade and industry secretary. ® See also
OFT set to investigate PC pricing
Consumers' Association calls for investigation into Dixons

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