IT firms seek extension of tax holiday

Main concern for IT companies is extension of the software technology parks tax holiday, set to end in April 2010

 

Wilting under the recessionary impact, the Indian IT/BPO industry is expecting the Congress-led UPA government to come to its rescue. Now that the coalition has got a clear mandate, the main concern for IT companies is extension of the software technology parks (STPI) tax holiday, set to end in April 2010. And most are cautiously optimistic about a positive decision.

 

Infosys board member TV Mohandas Pai said that getting an extension is the most important priority for the IT sector at present. "The industry is under a lot of stress because of the downturn. The sector is the biggest employment generator in India and job creation has been affected. So we want a five-year extension,'' he said.

 

Pramod Bhasin, CEO of Genpact and Nasscom chairman said, "We expect the government to offer support to the IT/BPO industry with the extension. The industry is witnessing a tough time and we expect the government to take some steps on this.''  Nasscom has given a list of priority issues for government's consideration. These include extension of tax, particularly for small and medium companies; removal of inequities and multiplicity of taxes on issues like FBT, Service Tax and overall uniform policy environment to enhance India's competitiveness and attract foreign investment.

 

Source: Financial Chronicle