India mulls tax-break extension for outsourcers

Source: ZDNet

Published: 07 May 2008 09:16 BST


India's fears that other countries are undercutting its dominance of the global outsourcing market have pushed it into extending a tax break for software companies, according to consultants.

The finance minister for India, Palaniappan Chidambaram, has decided to extend the tax holiday enjoyed by software companies in the country by one year, to March 2010, although this decision must be ratified by parliament.

Pierre Audoin Consultants (PAC) has argued this is a reflection of nervousness about countries such as the Philippines and Vietnam, where tax exemptions are threatening to beat India on the cost competitiveness that allowed it to dominate the global outsourcing market.

PAC said the decision was taken in the face of hard lobbying by Indian outsourcing industry group Nasscom, which had warned that not extending the tax holiday would result in the loss of 400,000 jobs as outsourcers went elsewhere.




Read more: http://news.zdnet.co.uk/itmanagement/0,1000000308,39411126,00.htm

a new country to hate because their government and ceo's are corrupt.

India will bleed jobs like crazy then.

is that they will inevitably shake you down too

my heart breaks for the Indian Government

boo hoo

What U.S. citizens have experienced for quite some time. All Corporations could give a rat's ass about citizens of their country, only for the cheapest bidder out there.