Trade and Industry Bodies Call for Tax Regime Simplification Pre-Budget

In the run-up to the upcoming budget discussion, trade and industry associations have raised their voices for a simpler tax framework. Key amongst these is the trade association representing the IT sector, NASSCOM, which has emphasized the need for enhanced investment in various crucial sectors. Specifically, NASSCOM has highlighted areas such as research and development (R&D), Intellectual Property (IP) rights, and the need for a more streamlined transfer pricing regime. These measures are seen as essential for bolstering innovation and maintaining competitive advantage in the global market.

Simplification of Tax Regulations

NASSCOM’s call for a simpler tax regime is underpinned by the belief that complex tax laws can impede growth and stifle innovation. The organization advocates for a more straightforward tax system that would not only reduce compliance burdens but also foster a more favorable business environment. This is particularly pertinent for companies that are heavily involved in R&D and rely on robust IP protection to safeguard their innovations. Streamlining the transfer pricing regime is also on the agenda, as this could significantly reduce the administrative strain for companies operating across different tax jurisdictions.

R&D and IP Investments

For companies such as Wipro Limited WIT, a leader in the IT sector, the focus on R&D and IP is crucial. Headquartered in Bengaluru, India, Wipro has established a strong presence on a global scale. By investing in R&D and IP, the company seeks to remain at the forefront of technological advancements and service delivery. A supportive tax environment would not only bolster Wipro's efforts but also encourage other companies in the sector to increase their investments in these key areas, further strengthening the industry as a whole.

Tax, Investment, NASSCOM