I went on a twitter rant about how we deal with incentives: 1/ India has wrongly placed too much on tax incentives. From zero taxed exports to tax credit for home loans, we’ve distorted our economy. — Deepak Shenoy (@deepakshenoy) November 23, 2015 2/ Take IT. Why didn’t the IT majors build great software for India? Because STPI (and then SEZ) rules said zero tax if you exported. — Deepak Shenoy (@deepakshenoy) November 23, 2015 3/ If you sold to India, you had to pay tax on profits. If you had 75% exports, 25% local you paid tax on the 25%. — Deepak Shenoy (@deepakshenoy) November 23, 2015 4/ Why bother with local at all? Discourage. Overquote. Do not invest. When the STPI sunset came in 2010, stuff for India happened. — Deepak Shenoy (@deepakshenoy) November 23, 2015 5/ SEZs. We get tax free exports plus duty drawbacks for exports. Why? … (Read On…)
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