FM should rationalise taxes in upcoming Budget: Nasscom

Mumbai: Software and allied services' industry body Nasscom today said Finance Minister P Chidambaram should rationalise taxes in Budget.

"We hope this is a growth-oriented Budget. We have asked for rationalisation of taxes to reduce the amount of litigation, which only vitiates the business environment. Therefore, we want the government to streamline the tax mechanism," Nasscom president Som Mittal said here.

[caption id="attachment_622962" align="alignleft" width="380"] Nasscom also wants the government to provide sops encouraging investment and promoting the culture of entrepreneurship. Reuters[/caption]

Nasscom also wants the government to provide sops encouraging investment and promoting the culture of

entrepreneurship, Mittal said. "We request to adopt entrepreneurship mission to encourage more entrepreneurship which in turn will create more jobs and investments," he said.

Besides, there is need to set aside money for IT spending, particularly in the area of healthcare and education where technology can make a big difference, he said. The industry lobby is also looking at reforms in special economic zone in the area of land acquisition, Mittal said.

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Earlier, Nasscom in its FY 14 outlook said the industry is set to touch $87 billion next fiscal by growing at 12-14 percent, a tad better than the current fiscal. Exports from the industry are estimated to have grown 10.2 percent to $75.8 billion this fiscal, it said.

Earlier, Nasscom Chairman N Chandrasekaran, while presenting the outlook, said, "The Indian IT-BPM industry has demonstrated resilience and agility in the past year. We hope the next fiscal will be a positive year for the industry."

PTI