The Smart Techie was renamed Siliconindia India Edition starting Feb 2012 to continue the nearly two decade track record of excellence of our US edition.
January - 2008 - issue > In Focus
IT industry lobbies for extended tax holiday
ST Team
According to Nasscom, if the ministry denies approving their demands the only solution left for the industry is to move to the special economic zone (SEZ) to enjoy the benefit of tax concessions.
However, Nasscom says this option has limitations and will affect the state of small and medium enterprises (SME) due to high rentals and low availability of SEZs in required locations.
Moreover, currently the business process outsourcing (BPO) industry is gradually shifting to second and third-rung cities where there are no SEZs. “BPO is a new and nascent industry with great growth and employment potential. At the same time, competition from other countries is intense since it does not need any specialized manpower. Therefore, there is a strong case to nurture and support this industry. Extension of STPI is one necessary step in this direction,” Nasscom said in a statement.
It has to be borne in mind that many other countries are offering big inducements to attract MNCs. Hence, Nasscom said that STPI scheme’s extension is necessary for creating a level playing field between small and big companies and between India and other countries.
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