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|February 28, 2001||Feedback|
'The focus on IT and technical education is a good thing'
We are happy about the increased IT spend. Happy about removal of 10 per cent surcharge on basic customs duty, the duty differential between inputs for manufacturing vis-a-vis finished goods. We are happy about the intention to simplify procedure and we will be very happy when excise moves into the VAT regime. Also, the focus on IT and technical education is a good thing.
We are also happy about the five-year tax holiday for ISPs and broadband networks as well as 10-year tax holiday for investments in IT parks and SEZs because both these mean better infrastructure for IT companies, cheaper availability of bandwidth which could stimulate penetration of IT.
Basically, the tax holiday for ISPs and broadband network will stimulate increased investments in infrastructure which will automatically improve the sector.
There are no increases in taxes, except for scientific and technical consultancies and online database services.
Overall, it is not a bad Budget, as there are several positive aspects to it.
I think the industry should concentrate on making the best of this Budget by looking at providing ingenious indigenous solutions for popularising IT.
Vinay Deshpande is President, MAIT and CEO, Encore Software Limited