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Narayana Murthy stresses taxing foreign firms

Infosys Technologies Limited chairman N R Narayana Murthy has renewed his call for imposition of taxes on foreign companies in India.

''I strongly feel that the government should levy taxes on all export companies to generate more revenue which could be utilised in development works in the country,'' Narayana Murthy said.

''When we are making money, the government should not forego taxes. It will not be fair on our part if we do not pay taxes and also not participate in development process,'' he said.

The Infosys chief said that he was the only corporate leader in India who had repeatedly advocated that companies who make export profits must pay taxes.

''I have raised the issue at various fora and am extremely unpopular in the corporate world,'' he added.

The government has said it would consider the imposition of taxes by the year 2009, Narayana Murthy said, adding by that time, the corporate world would press for the extension of the deadline to 2099.

Once a particular industry reaches a critical level of maturity, then it should pay taxes and have the same regime and benefits as other industries, he said.

Those companies which have been paying taxes outside India would not be affected by the taxation policy.

''I am also a strong advocate of taking technology to every nook and corner of the country. We need technology much more than anybody else. My battle with the government in this regard is going on," he added.

The Infosys chief was in New Delhi to launch the Research Programme of the Institute of Chartered Accountants of India-Accounting Research Foundation.

The agreement for the fellowship schemes was signed by Murthy and N D Gupta, president ICAI.

Under the agreement, the endowment of Rs 9,00,000 per Infosys Fellow to be provided by Infosys to the ICAI-ARF will be used directly for benefiting the Fellow for three years. Four fellowships will be given every year starting 2002.

During the period, the fellow will be given a stipend of Rs 25000 per month.

The research can be performed in any branch of accounting, auditing, finance, fiscal and corporate laws, capital markets, corporate governance, information technology and related areas.

UNI

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