New Delhi: Nasscom President Kiran Karnik said there may be a possible slowdown in the momentum of India's Information Technology (IT) exports after 2010, due to the recent tax impositions on the sector.

He said though the IT sector would meet its current export targets but there might be a slowdown after that he said.

According to a study commissioned by Nasscom, India's IT-ITeS exports are expected to cross $31 billion in the current calendar year and are expected to exceed $60 billion by 2010.

As per the finance minister's budget announcement, IT industries have been brought under the 'minimum alternative tax' (MAT) bracket while 'employee stock option plans' (ESOP), very popular with IT companies, have been brought under the purview of fringe benefit tax.

In a post budget statement issued by Nasscom, Karnik had said that companies were "dismayed" at the proposal to extend MAT on export incomes, which were exempt under Sections 10A and 10B. He added this move could "affect investor confidence and growth in this sector which is not only India's biggest exporter ($31.6 bn in 2006-07) but is the biggest employer in the organised private sector."