Newskarnataka – Bangalore

Bangalore: The state government has decided to continue providing tax relief to IT companies as against the demand of the BJP  to stop giving tax respite to profit-making IT companies. The state government has paid no heed to the demand claiming that IT sectors in the State create job opportunities.

MLC of BJP, G Madhusudhan stated that the tax relief given to IT companies has exceeded the budget, while other BJP MLCs also supported Madhusudhan’s views.

However S R Patil, Minister for IT, Biotechnology and Science and Technology, justified the tax rebate, saying the IT sector provided direct employment to 10 lakh people and indirect employment to 20 lakh people in the State.

As per the new IT policy, the government is encouraging the IT companies to move out of Bangalore and set up  their branches in other cities of Karnataka where land is available at cheaper rates, he added.

The minister further said that IT firms would continue to receive exemptions in electricity usage as industrial rates would be applied to them instead of commercial rates.