The software industry has once again appealed to the government to continue tax sops under the Software Technology Parks of India (STPI) scheme on a par with special economic zones beyond 2009. ?We want the government to make favourable policy changes to provide a level-playing field to the small and big IT firms. While the big IT companies can afford to set up units in SEZs and enjoy the tax benefits extended there, the smaller companies will feel the heat once the scheme ends in 2009,? Nasscom president Kiran Karnik said on Monday.
Continuation of the scheme would help the sector maintain competitiveness among small IT and ITeS firms that are affected by the appreciating rupee. The STPI scheme, which gives the software companies exemption from paying tax on export earnings, expires on March 31, 2009. Karnik also agreed with Satyam chairman Ramalinga Raju saying the government should acquire assets abroad and earn higher returns from foreign currency reserves to balance out the inflow and outflow of dollars. Raju had earlier said the government should form a fund to invest overseas.
