Saturday, June 30, 2007

Should India levy import duty on Google?

Today Hillary Clinton made a statement that outsourcing is a problem and that some tax adjustments needs to be made to keep jobs in America.

As far as I am concerned Silicon Valley is stealing 1000s of jobs from India. SV is producing products like Google, Yahoo, Facebook, this very Blogger, etc which are freely being imported over the Internet into India. These products are then being "sold" in India, with their owner companies either charging end users for using these applications or by way of Indian companies advertising on them and passing on costs to Indian consumers.

India too should then tax software imported over the Internet. If these products were being made in India, then these jobs would be India. It can easily devise a whole new method of measuring all foreign currency payments for software and media. Infact with all software & media slowly and surely being delivered over the Internet, it is inevitable that a new definition of Imports will soon come about.

Why can't politicians stay out of a domain they don't understand, instead of forcing a global trade war?

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