Covid-induced WFH hits Telangana's revenues hard
Covid-induced WFH hits Telangana's revenues hard
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Hyderabad: It is not just the shortage of beds, medicines or oxygen that had caused problems for the State Government during the last two waves of corona pandemic. There is another serious cause of worry for the government and that is the concept of work from home. When there was an outbreak of corona cases during the first wave, all IT companies and ITES (IT Enabled Services) announced work from home policy to avoid spread of the virus. This concept of course had its own impact on the employees who feel that they are under greater work pressure now but as far as the government is concerned, it has a much bigger cause of worry.

The IT companies from Delhi, Mumbai, Chennai and Bengaluru which had planned to expand their branches to Hyderabad have now seem to have backtracked. They are employing people but are encouraging them to work from home. This is adding to the worries of the government as the WFH system by the existing companies has resulted in revenue loss of nearly Rs 3,000 crore and has taken away the indirect employment of cabs, air travel, hospitality industry and other services provided by the IT firms.

Now the decision of the many companies to encourage WFH model instead of opening new branches is threatening to result in a major blow to the revenue earning of the governments. A top official of the state Commercial Taxes department told The Hans India that the WFH option has been playing a big havoc on the services' sectors which depend on IT companies. Some small IT and ITES companies have vacated the campuses in Hi-Tech city. As a result, economic activity has come to standstill. If the companies run their business as usual, the government will earn money through tax collections like property taxes and turnover tax. 

 

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