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Raja bats for extension of STPI scheme
April, 05th 2008
The Union Communications and IT Minister, Mr A. Raja, hascome out in support of the IT/BPO industrys demand for an extension of the STPI scheme. The STPI benefits are available till March 31, 2009.

On Wednesday, I met the Finance Minister. I have requested Mr Chidambaram that STPI incentives should be extended for another 10 years. I have requested him to work out some modalities to at least help the small investors may be those with investment up to Rs 100 crore. These people should not suffer due to the STPI sunset clause, Mr Raja said.

Earlier this week, a high-level group constituted by the Planning Commission had also asked the Government to address the tax issues faced by IT and BPO units. The Group had noted that the introduction of income-tax benefits for the IT units in special economic zones (SEZs) has created a problem for units in the Software Technology Parks of India (STPI) as the tax sops for STPI are scheduled to be phased out in March 2009.

Asked about the IT Act amendments, the Minister pointed out that the legislation would be introduced in the current session of Parliament.

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