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Budget 2009: More Views from India Inc.|
- By CXOtoday Staff, Jul 03, 2009 1542 hrs IST
- Tags : Budget 2009, IT, ITeS
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Some of India's leading IT companies voice their expectations from Budget 2009
Alok Bharadwaj, SVP of Canon India:
While I expect this budget to foremost address macro issues that impact demand generation, the industry also needs administrative & tax reforms in various areas like for movement of goods & double taxation. In 16 states in India, there are entry formalities for goods movement. Every transaction needs be accompanied with entry form, availability of which is always cumbersome. There are also double taxations on work contracts for providing services to customers in OA & imaging industry. We levy service tax on total value of contract and then VAT on material value. This needs correction. On custom duties, correction is needed on lenses and accessories of Digital SLR which are classified separately & thus attract peak duties of 10% where as Digital SLR is classified under zero basic duties. This results into extremely high grey market for lenses causing enormous revenue losses for government as well as companies operating in India. Apart from this some announcement on GST progress roadmap will be highly welcome.
Deepanshu Sharma, GM (marketing strategy & ISV alliances) of AMD India:
We hope that the government will increase their focus on PC penetration. government needs to provide more incentives for local IT manufacturing (for desktops and laptops) and the government should also look at faster deployment of technology for speeding up e-governance reforms within central and state departments, and public sector units. Tax exemption for educational institutions and universities is another primary area that would help drive faster technology adoption, thereby making the students industry-ready when they pass-out of schools and colleges.
Debasis Chatterji, CEO of Netxcell:
Mobile industry pays around 20-25% direct and indirect taxes the load for which is ultimately passed on to the subscriber but if this tax is reduced, it would form a catalytic factor for the industry which currently is growing at the rate of 40-45% . If we want to achieve another 10% growth the government should cut the taxes for the industry which will help in increasing the subscriber base and eventually generating more revenues. We would also expect the government to distinguish profitable PSUs to generate additional cash which will reduce the fiscal deficit.
Ramesh Lognathan, MD and VP (products) of Progress Software India:
IT industry would expect the government to extend the STPI scheme for a few more years to help tide over the current crunch the industry is facing. The tax relief will help take some pressure off the companies that are already facing reduced business, severe pricing pressures and both driving profitability concerns. This becomes very critical specifically for SME organizations.
From a medium term standpoint, I would like to see the budget also encouraging domestic software companies to target more of the domestic market. Not so much as a protectionist measure, but more as a measure to encourage more active participation. I would also expect government to encourage (and stimulate) IP creation. Pushing the industry beyond the present outsourced services focus to create packaged software and products would also help.
Related links:
Extend Tax Relief to IT: JP Morgan
'Budget Should Bring Uniform Taxation'
IT industry in Need of Concessions : Vishnu Dusad
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