The West Bengal government has decided to back the demand of the software industry for the extension of tax benefits under the Software Technology Parks of India (STPI) scheme, which are otherwise scheduled to be phased out by 2009.
The Indian IT industry has been demanding continuation of tax concessions under the STPI scheme beyond the sunset clause of 2009, and is not keen to move into the special economic zones (SEZs), a concept that the government is now promoting.
State IT minister Debesh Das met Union communications & IT minister A Raja on Monday and requested that the existing STPI benefits like corporate income tax exemption, scheduled to end by March 2009, be extended till 2020.
Das said one of the reasons behind the high growth of Indian software industry is the benefit the industry got from the STPI scheme, which came into existence in mid-1991.
The benefits include corporate income tax holiday, duty-free import and reimbursement of central sales tax on local purchase. In addition to cheap real estate prices, the STPI scheme has been of great help to the small & medium software companies.
“We have told the communication minister that for the small & medium software companies, the extension is particularly required. For them, a place in a SEZ requires shelling out hefty amount as real estate price, which may not be possible,” Das said.
Meanwhile, Raja has told Das that the central government is pursuing the state’s case for a marine cable landing station.
“Raja said the central government is considering a place near Digha for the landing station. Previously, the state government’s choice was Haldia. But we don’t mind as long as we get one,” said Das.