The Hindu : Kerala News : Tax hike on IT products temporary: Siddaramaiah

Online edition of India's National Newspaper
Sunday, Sep 26, 2004

Kerala

Kerala

Tax hike on IT products temporary: Siddaramaiah

By Our Staff Correspondent

MYSORE, SEPT. 25. Allaying fears expressed by the captains of the information technology (IT) industry over the increase in sales tax on IT products, the Deputy Chief Minister, Siddaramaiah, today said that the increase was only temporary and the industry need not have any apprehensions about the Government's intentions.

The Deputy Chief Minister was speaking after inaugurating a two-day all-India workshop on "Information and Communication Technology for the Masses" organised by the Institution of Engineers here.

He said most of the debate today centred on the increase in sales tax from four per cent to 12 per cent on IT products. This, he said, was only temporary, as it would have to make way for the uniform value added tax (VAT) regime by April 1, 2005, after which the rate of sales tax across the country would be uniform.

`Unavoidable'

"Though the Government tried to allay these fears at a meeting with Azim Premji and Nandan Nilakeni, I am convinced that they were not happy with the explanation. However, the increase could not have been avoided," he said. Mr. Siddaramaiah said the Government would assist, support, and promote the IT industry. He, however, said the benefits of IT should not be restrained to a few people or to a particular region. "The Government is pro-IT and pro-poor," he added.

Problems

Acknowledging that Bangalore faced infrastructural problems, Mr. Siddaramaiah said the city and other centres did not meet the growth standards. The Government investment on developmental works had come down, and sales tax was the only source for the State Government to generate income. The Government was spending 75 per cent of its revenue on pension, salary, and debt servicing while 25 per cent was being spent on development works.

Teleconference

Earlier, at a teleconference with MLAs from Mandya district, the Deputy Chief Minister felt that IT should be promoted as a tool to provide emergency medical services in rural areas. He was interacting with the MLAs after launching a telemedicine project of Vikram Hospital and Heart Care here. While urban people had access to good healthcare, the rural masses were deprived of it, he said. In the light of this, IT, as a tool, would help in ensuring healthcare for the rural masses, he said. K. Dinesh, founder-director of Infosys Technologies; Rame Gowda, former Chairman of the All-India Council for Technical Education; K.C. Balaram, Mysore Zilla Panchayat President; and M.N. Shivaram, chairman of the Institution of Engineers, Mysore chapter, were present.

Printer friendly page
Send this article to Friends by E-Mail

Kerala

News Update

Stories in this Section