THE HINDU, 25 Sep 2004
'Tax hike on IT products temporary'
By Our Staff Correspondent
MYSORE: 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 percent to 12 percent on IT products. This, he said, was only temporary, as it would have to make way for the uniform value added tax regime by April 1, 2005, after which the rate of sales tax in the country would be uniform.
The Deputy Chief Minister, Siddaramaiah, interacting with MLAs from Mandya district through teleconference during the launch of telemedicine facility in Mysore on Saturday
"Though the Government tried to alloy 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.
Teleconference
Earlier, at a teleconference with MLAs from Mandya district, he 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.
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