Terming the hike in visa fee as "discriminatory", industry body Ficci on Tuesday (22 December) said the move will have a negative impact on efforts made by India and the US to build stronger trade ties.
Such legislation will also hamper the growth of the US economy as it will hurt huge tax revenues coming from Indian IT firms, it said.
"FICCI feels that the hike in special fee on the popular H-1B and L-1 visas for James Zadroga 9/11 Health and Compensation Act of 2010 will hamper the growth of the US economy and will be discriminatory for Indian IT companies," Ficci said in a statement.
Almost all Indian IT companies would pay between $8,000 and $10,000 per H-1B visa from April 1, 2015, when the next annual H-1B visa filing session starts, thus making it quite economically unsustainable for them.
This is not only because of the $4,000 new fee imposed on Indian IT companies under the Consolidated Appropriations Act 2016, which was signed into law by President Barack Obama, but also due to the series of other fee that the Congress has added in the H-1B visa application over the past one decade.
Notably, the original H-1B visa application fee is $325. India has been in talks with the US in this regard.
"Indian IT industry is of the opinion that the additional fee is unjustified similar to the earlier border security and now Health and compensation Act it has little relation with the technology industry," Ficci said.
Such legislations not only impact business of the Indian IT sector but also limit access to skilled IT personnel for US companies, it added.
Ficci said increasing costs of hiring IT skilled personnel and services will influence US technology companies to consider moving IT operations overseas, thereby reducing US jobs and tax revenues.
BW Reporters
Haider Ali Khan is an alumnus of IIMC. He holds a degree in English Journalism from the prestigious campus. His passion includes Aviation, Technology, Politics and Sports.
