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Tax techies, not products: Premji

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The Wipro Chairman, Mr Azim Premji, with the Karnataka Deputy Chief Minister and Finance Minister, Mr Siddaramaiah, in Bangalore on Wednesday. - K. Gopinathan

Bangalore , Aug. 11

THE Wipro Chairman, Mr Azim Premji, has asked the Karnataka Government to raise the professional tax levied on employees in the IT sector and review the State's move to hike sales tax on IT products and services.

Mr Premji met the Karnataka Deputy Chief Minister, Mr Siddaramiah, on Wednesday to discuss the industry related infrastructural issues including the proposed hike in sales tax on IT products and services from five to 12 per cent.

Speaking to reporters, Mr Siddaramiah said that Mr Premji had suggested that the Government could raise the professional tax levied on IT employees, as they earn better salaries, to mobilise more resources and at the same time, felt that the sales tax on IT products was high.

While Mr Premji declined to speak to the press, Mr Siddaramiah said that the Wipro Chairman's suggestion to hike the professional tax was welcome.

Regarding the tax issue, Mr Siddaramiah said he explained to Mr Premji the rationale, background and the logic behind the Government's move to hike the tax on IT products. The Government holds the view that "those who can afford to pay the tax, should pay," he said.

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