IT Industry Not Enthused By Budget

Vinay Deshpande, CEO, Encore Software

“In the hardware industry, today there is 16 percent excise duty. There was
a hope that it would come down to about 12.5 percent. But there was nothing like
that in budget”

Suresh C Senapaty, CFO, Wipro

“Introduction of MAT in a situation where there is a committed relief till 2009
is a retrograde step and not consistent with the principles of good governance.
The Industry is disappointed that the much expected extension of the sunset time
line of 2009 did not happen, particularly when the PM himself has set a much
higher target of exports for the Industry than what was forecasted.”

Partha Iyengar, Research VP, Gartner

“The two minor irritants for the IT industry, the MAT and inclusion of ESOPs
under FBT won't affect the industry much (as the stock markets seem to have
interpreted them). They are minor turbulence for the industry growing at a fast
pace and is reaching some level of maturity.”

Ninad Karpe, MD, CA India and SAARC

“Budget 2007-08 focused more on agriculture, healthcare and education
segments. However, this budget has given e-governance its due diligence

by increasing the allocation for e-governance. This will boost the e-governance
initiatives across the country. Also, the proposed Rs 33 crore for a new scheme
of manpower development for the software export industry is in the favor of IT
services industry.”

Vinnie Mehta Executive Director, MAIT

“We welcome the government's decision to maintain the current excise and
custom duty levels on IT products. The hardware industry supports long-term
stability in policies and duty structures as frequent changes could adversely
impact the investment and business plans of the industry”

Rahul Gupta, Vice Chairman, Storage Networking Industry Association

“The budget disappointed me. In my view IT Industry has been contributing
substantially to the government tax and other receipts. I felt that the
contribution by the IT industry was not even acknowledged suitably in the
budget. There is also no such benefit for encouraging the IT industry.”

Krishan Dhawan, MD, Oracle India

“Given the positive growth trajectory rate, there was no need for a dramatic
change in the budget. It is good to see the fiscal deficit under control. I
would first like to congratulate the FM for boosting the share of education and
healthcare, both essential for overall development. Education needs greater
attention, as this is where the future lies.”

Ravi Venkatesan, Chairman, Microsoft India

“We appreciate three aspects of the budget. First is the emphasis on
education, skills and stimulating the rural economy. Second is the reduction in
the peak rate of customs duty and finally, increased outlays for e-governance.
At the same time things such as imposition of MAT on the deductions applicable
to IT companies and increase in the Dividend Distribution Tax could have been
avoided.”