Information technology czar Azim Premji on Wednesday asked the Karnataka government to raise professional tax levied on employees in the sector and review the move to hike the tax on IT products and services.
Premji, Chairman of the NYSE-listed Wipro Ltd, headquartered in Bangalore, met Deputy Chief Minister Siddaramaiah and put across the views of the sector in which Bangalore has carved out a niche for itself.
Siddaramaiah quoted Premji as saying that the government could raise the professional tax levied on employees of the sector to mobilise more resources.
"It's a welcome suggestion," Siddaramaiah said.
Premji felt that the IT professionals could be taxed more as they draw 'handsome salaries,' and also that the hike proposed in the budget on IT products and services from five per cent to 12 per cent was high, according to him.
After the meeting, Premji declined to talk to the press, saying he has no comments to offer.
Siddaramaiah said he explained to Premji the 'rationale, background and logic' behind the government's move to hike the tax on IT products.
"The government holds the view that those who can afford to pay the tax, should pay."
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