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Maran appeals to extend tax holiday for IT industry
November, 20th 2006

With income tax concessions for STPI (Software Technology Parks of India) coming to an end by March 2009, the IT and Communications Minister Dayanidhi Maran on Friday said he has appealed to the Finance Ministry to extend tax holiday for the software industry.

"Our ministry has been proactively supporting growth of IT and ITes industry through positive changes in tax regime. We have already appealed to Ministry of Finance to extend the tax holiday for this industry beyond March 2009," he said.

Maran said the country has generated about 8.4 billion export revenues in the ITes sector in 2005-06, which is almost four times the revenue generated in 2001-02.

According to industry analysts, the global IT and ITes segment is estimated to reach 3,400 billion by 2012, he said.

The IT Ministry is working with various state governments to introduce basic computer education in schools in rural and semi-urban areas, Maran said adding,"We have to increase the penetration of IT to every part of the country."

The Minister said many state governments are planning to introduce IT in various departments, which will enable people to transaction business with the government in a simple and easy manner.

He, while speaking at the inauguration of Dell's customer care center in Gurgaon, said more IT penetration across the country will lead to greater transparency in the transactions.

The Gurgaon center is the Dell's fourth center in India after Bangalore, Hyderabad and Chandigarh and will employ about 1,000 people by the end of this year from 800 currently.

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