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Azim Premji with Karnataka deputy chief minister Siddaramaiah in Bangalore on Wednesday. (PTI) |
Bangalore, Aug. 11: Wipro chairman Azim Premji today requested Karnataka deputy chief minister Siddaramaiah to roll back the rise in sales tax on IT software and hardware.
On behalf of the industry’s workforce, Premji reiterated the offer to double the professional tax to mobilise resources for amenities in Bangalore.
Though Premji declined to speak to reporters, a Wipro executive said the government had agreed to discuss the tax issue in details. “A meeting on tax revision will be held in a week with the finance and IT department officials,” the executive said.
“We will explain to them the need to review the 7 per cent tax rise in software, hardware and peripherals and 3 per cent in computer consumables,” he added.
Siddaramiah said he had explained to Premji the compulsions of the government in rationalising the sales tax on IT and the logic behind the rise to mobilise resources. “The government feels that those who can afford to pay the tax, should pay. I have heard their views and have directed my officials to hold a meeting with them to see what we can do as we understand their concerns,” he said.
Premji repeated his suggestion of higher professional tax for IT professionals, the deputy chief minister added.
On July 21, the IT products and services sector in Karnataka, for the first time, observed a day-long strike to protest the enhancement in sales tax proposed by the coalition government in its maiden budget. About 3,000 dealers of IT products and services across Karnataka responded to a call by the Association for Information Technology (AIT) and shut shop for a day.
“The proposed tax hike will make Karnataka the highest taxed state in the country for the IT industry, including the hardware and software sectors,” association president Dhananjay Collur said.