Murthy on Devils Advocate
I cant wait to see this interview. The “Chief Mentor” of Infosys, NR Narayan Murthy is going to be on Karan Thapars “Devils Advocate” on Sunday, Jan 7 at 20:30 hrs (IST) on CNN-IBN. Link here
Reality Checks’ only question for him would be.
So, Mr Murthy – when is the tax holiday ending for the Indian IT industry ? You see, we are a poor country. We need your tax dollars for roads, schools, crushing terrorism in Assam.
If IT services companies do not pay corporate taxes (excise and customs too) like others, we will have UNICEF and other bodies mocking us openly about child malnourishment. Sir, we want to avoid that, dont we ?
Please request Nasscom not to lobby for more tax holidays via the SEZ route or extension of STPI holidays. Our politicians are weak kneed and will easy succumb to such high flying sophisticated lobbyists like Mr Karnik.
In a country like India, privatization is not the answer to everything. As we can see with the IT industry and the SEZ policy, private players quickly organize themselves into special interest groups. These groups then go on to create special privileges for themselves – such as tax holidays – SEZ units. This kills competition which you so crave for. Perhaps you may not be aware of Mr Friedmans buddy, Mr Mancur Olson, warned about such special interests.
We need tax money so we can create “public services” for all Indians to enjoy. Tax money cannot be used to create “private services or comfort zones” and then use these services as a leverage against smaller competitioin.
More after the interview.