A 10 per cent drop in current PC prices would increase the demand by 30 per cent, analyst firm Skoch said on Thursday and asked the government to facilitate lowering of PC prices by reducing excise duty to eight per cent from the current 16 per cent.

Drop in prices of PCs would require help from government, which can reduce excise duty from the current 16 per cent to eight per cent and enhance depreciation to 100 per cent from the current 60 per cent, Sameer Kochhar, CEO, Skoch told newspersons in New Delhi.

Skoch has also sought removal of the four per cent special additional duty.

Stating that India has the highest tax rate on PCs in Asia-Pacific at 35 per cent against 0-17 per cent in other countries of the region, he said this has led to a flourishing grey market at 61 per cent.