Indian industry body FICCI had termed the increase in H-1B visa fee
as discriminatory. It also said that the measure would put a negative effect on the efforts made by both the countries for building stronger business relations. It also said that such law would also hinder the development of the economy of the US as it would hurt enormous tax incomes coming from IT companies of India.
In a statement, it said that the increase in the special fee on the famous H-1B and L-1 visas would hinder the development of the economy of the US and would be biased for the IT firms of India.
Almost every IT firms from India will pay around $8,000 and $10,000 for each H-1B visa from 1st April, when the next yearly H-1B visa filing session begins, making it financially unsustainable for these companies.
This is not only due to the latest $4000 fee which is imposed on the IT firms of India but also due to many other fee that has been added in the application for H-1B visa over the previous one decade. Interestingly, the original fee for H-1B visa application is only $325. The Government of India has been talking with the US regarding this issue.
As per FICCI, the IT industry of India is of the view that the extra fee is unjustified as same to the previous Acts it had small relation with the tech industry. Such laws not only affect the business of the IT sector of India but also restrict the access to IT employees with high skills for the companies of the US.
It also said that the rising cost of recruiting the skilled IT employees would sway US technology firms for considering moving IT operations abroad, thereby minimizing the US employment and tax incomes. It would also imbalance the US IT services and linking the unemployment, and the issue of H-1B visa with the Act is not fair and must be deal independently with much broader view and should consider the overall effect on both country’s economies.
As per report from Nasscom, this is predicted to have an effect of about $400 million yearly on technology sector of India. The technology sector of India paid $22.5 billion in form of taxes during the FY 2011-2015 and had also invested around $2 billion in the year 2011-2013 in the US and had also supported around 4,11,000 jobs in the year 2015.