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IT/ITeS Sector has High Expectations from Budget|
- By Muntazir Abbas, Jun 29, 2009 1750 hrs IST
- Tags : Budget 2009, Muntazir Abbas
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The IT/ITes industry that contributes around 6% to the national GDP has high expectations from the Union Budget 2009. Besides extension to STPI scheme, the sector is asking the Finance Ministry to clear the mist around tax anomalies.
With the UPA in power for second term, the sector is optimistic about the ongoing IT-driven initiatives, and hopes that the new projects get a boost through tax relaxation and removal of taxation anomalies in the wake of global economy slowdown. The industry currently employs more than one crore individuals in the country.
In an exclusive interaction with CXOtoday, Himanshu Parekh, executive director (tax and regulatory services) of PricewaterhouseCoopers said that in view of the competition from other emerging economies, such as China and Philippines, the Indian IT/ITes sector would suffer competitively if the tax holiday expires in March 2010. The continuance of tax holiday for the units in Software Technology Parks of India (STPI) beyond 2010 is however a key demand of the industry.
"The need of the hour is to clear the mist around various issues through suitable amendments and clarifications in the budget. This will result in providing much needed certainty to the industry and mitigate the ongoing litigation on these issues," said Parekh. Finance Minister, Pranab Mukherjee has however, already indicated that a clarity related to tax issues would be provided. Sridhar Reddy, chairman and managing director of CtrlS datacenters said that during the recessionary phase, the government should come out with special measures for the IT industry.
"The government should accelerate the budgeted spend on various activities like SWAN, mission mode e-governance projects, national mission on education through ICT and data centers," he said. According to Reddy, the government should come with further stimulus packages for the industry as well as the extension of the STPI scheme by another 10 or 5 years, and rationalization of customs duty on imported equipments.
Related
links:
India Needs to Study China Model : Ramesh Vaswani
Domestic IT Needs Govt Support : Rajshekhar Roy
India needs more Incentives: Naresh Wadhwa
STPI needs FM's Support: Mohan Sekhar
"Rationalize taxation on pan India basis"
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