The Hindu Business Line : Bangalore's woes

It was a pleasure to read your article, "Why Bangalore is not Silicon Valley" (Business Line, October 31). Worldwide, tax concessions are given for start-ups, but nobody has been feeding millionaires and billionaires with a 100 per cent corporate tax exemption. IT industry employees, who are treated on par with all other employees in India and pay the salaried income taxes, pay the only taxes paid.

The IT industry may consider itself non-polluting. But considering the increased load on city roads and sewerage systems, and increasing water and air pollution because of the labour-intensive nature of the sector clearly shows need for city zoning limits.

IT companies in and around the city centres causing congestion and pollution should be asked to pay the highest rate of municipal and water taxes, which should force these companies to move away from the cities.

The IT lobby keeps pushing for better infrastructure and amenities which are paid for by tax-payers' money, though the IT sector itself is exempt from several taxes.

Historically, Indian farmers have been given 100 per cent income-tax concessions, but the farmers have not become billionaires, and the benefits of growing tax-free vegetables have been largely passed over to the people. All start-ups need concessions, but that needs to be capped up after the unit makes Rs 10 crore profits. The increased corporate income-tax collections from the IT sector can be used to fund the vital infrastructure the country urgently needs.

Ramesh Padmanabhan

Bangalore

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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