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'There has been an acknowledgement that the IT and telecom industries are the key drivers of the economy'

BUDGET 2000

Sunil B Mittal

The telecom and entertainment industries have gained from concessions in both direct and indirect taxes. Pharma has gained by getting certain exemptions on routinely needed medicinal items.

It is overall a very well thought of and well planned Budget. The process of simplification has been carried forward and strengthened. There has been an acknowledgement of the fact that the IT and telecom industries are the key drivers of the economy in the new millennium. This acknowledgement has allowed the government to give further concessions in the form of duty reductions on computer hardware, cell phones, fibre optic cables besides giving ISPs infrastructural status.

What was disappointing was the increase in tax on dividend.

Income is an income and an income is what the FM stated in response to income on exports. Software exports will also attract income tax from the financial year 2001 onwards. However, the spread is over a five year period with a 20 per cent exemption withdrawn each year.

The net profits of software companies will be affected to that extent like any other industry.

Overall, a very positive and forward looking Budget. There is a clear thrust on the rural and agricultural sector. The simplification process will further release entrepreneurial energy.

Sunil Mittal is Chairman and Managing Director, Bharti Enterprises

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