Infosys on Tuesday favoured introduction of tax breaks for smaller technologies companies, even as sops under the STPI scheme are slated to come to an end this fiscal.

Mr S Gopalakrishnan, CEO and MD of Infosys, said that while he supported the implementation of the Direct Taxes Code, there could be a case for encouraging smaller companies and entrepreneurship through focused tax breaks.

“First of all, I would like to see DTC and GST implemented so you can streamline taxes, both indirect and direct, and make it easier for companies to get clarity on certain things. STPI scheme has been slowly going away and the indications are that it will not get extended. The Government must look at stimulating formation of small companies…it is through entrepreneurship that you can get new products and technologies to marketplace.” he said.

Such focused support to smaller companies could either be made in form of tax breaks for few years, say 2-3 years, or through tax breaks till certain threshold revenue is achieved, he pointed out.

“It could be separate from DTC or part of it. Overall, we need to look at technology in the broadest sense. So it could be aimed at companies focused on new technologies such as biotechnology or nano technology…any kind of innovation must be promoted and supported. So research and development investments, start-up companies, all these should be supported,” he said.

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