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India’s IT industry body Nasscom on Thursday said the US Congress decision to increase fee for H-1B and L1 visas is a contradiction to US’ call for opening up markets, especially to allow American companies to invest and do more business in India.
“We are increasingly seeing a growing protectionist trend from developed countries like US who have been strongly advocating India to have a more liberalised trade and business environment. This move is contrary to President Barack Obama’s stated support for continued openness and ease of access to the US market by Indian service companies and his advocacy of continued openness of the Indian market to US companies,” Nasscom said.
On Wednesday, the US Congress imposed a special fee of up to $4500 on the H-1B and L-1 visas to fund a 9/11 healthcare act and biometric tracking system.
The US House of Representative is slated to vote on the $1.1 trillion spending bill deal on Friday following which it goes to the Senate and then the President for assent.
Less than two weeks ago, two US senators introduced a legislation seeking to cut the number of H-1B work visas by 15,000.
Companies having at least 50 employees with 50 per cent of their employees on H-1B or L-1 visa, will have to pay a new fee of $4,000 for H-1B visas and $4,500 for L-1 visas, as per the bill.
Nasscom said it has raised this issue at all levels and there is strong support from the Indian government, along with associations like USIBC and the US India CEO Forum. Prime Minister Modi has also raised this issue and expressed his concern directly with Obama.
The temporary provision for the large visa fee is for 10 years as against a previous provision of five years.
A previous provision to charge $2,000 tax on H1-B visas under James Zadroga 9/11 Health and Compensation Act of 2010 ended on September 30, after a one year extension.
Though targeted mainly at Indian IT companies, the fee was used to strengthen the porous US-Mexico border, by deploying an additional 1,500 National Guards, unmanned drones and other measures.
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