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Tax on royalties

Tax on royalties To finance scientific and industrial research, a new tax on royalties on imported technology paid by industries was announced during the 82nd session of the Indian Science Congress in Calcutta by prime minister Narasimha Rao. He had earlier given indications last year in Jaipur that Indian science had better look for its own finances.

S C Pakrashi, president of the congress, however, chose to highlight the desperation in his community: "In view of globalisation, the country's investment of 0.83 per cent of the gross national product in 1993 is dismal. If industry is to compete globally, it needs research, which in turn needs funds."

During the 3 days, the scientific community urged the government to immediately announce the revised science and technology policy to ensure a partnership between them, the government and industry.

"The move of taxing imports is aimed at boosting indigenous R&O without totally discouraging import of technology. The fund would take a while to build up to a functional level but it is a step in the right direction," says a senior official with the ministry of science M at the Science Congress and technology.

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