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IT industry concerned over property tax hike proposal
January, 23rd 2013

Concerned over the proposed steep upward revision of property tax on them, IT companies here are expected to meet senior state government officials within a couple of days over the issue.
The Chennai Corporation Council passed a resolution yesterday seeking to increase the property tax for IT companies ranging between 50 to 200 per cent hike.

"We have been getting calls from several IT firms and agencies since morning. We are planning to meet the Government and discuss the matter during the next two days..", a senior official of an IT industry body told PTI.
Expressing apprehensions that the move would affect the industry, the official said small companies and start up firms should be spared from such steep hike.

"The government by way of encouraging start up IT companies may relax the norms to companies whose turnover is less than Rs 5 crore..," he said.

He also said the government should ensure proper infrastructure facilities for IT companies. "It cannot be a one way process. It should be two way. If they are increasing the property tax they should ensure provision of infrastructure facilities (to IT companies)", he said.

After Bangalore, considered the country's IT capital, Chennai has a number of IT firms with several of them setting up base on the Old Mahabalipuram Road also known as the IT corridor.
According to Software Technology Parks of India, IT exports from Tamil Nadu and Puducherry reached Rs 46,791 crore in 2011-12, up 10.8 per cent from Rs 42,210 crore registered during the previous fiscal.

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