The government issued tax exemption proposals
With the Coronavirus Indian faced most economic issues.
India, the third-largest economic country in Asia, is fast-moving towards its first full-time contraction in four decades. India so far failed to provide much stimulus. Given the government’s limited fiscal room, 12.20 billion people lost their jobs this April. Also, Consumer demand was deeply decrease.
The government is exploring measures to support to uplift the economy. The Trade Ministry identified 50 industry clusters to improve existing infrastructure, laboratory, and research and development (R&D) facilities.
Therefor trade ministry is proposing to give a tax holiday for new investors. The government provides various tax exemption proposals.
10-year tax exemption proposal
This proposal gives a 10-year full tax exemption to investors, Who making new investment upwards of $500 million.
Under this plan, companies must begin operations within three years from June 1. It will cover many sectors. Such as medical devices, electronics, telecom equipment and capital goods.
04-year tax exemption proposal
This program provided a four-year tax holiday to companies that invest $100 million or more in labor-intensive sectors. Such as textiles, food processing, leather, and footwear.
Also, the people proposed a lower corporate tax rate of 10 percent for the next six years. But still it is not approved the finance ministry.
The government hopes to attract investment that leaves China.
Also government hopes to provide easier access to land for factories, leaving China to tax breaks for new plants. Also, the Prime Minister Narendra Modi’s administration is trying to lure investors and stop the Coronavirus pandemic from wrecking the economy.
The government provided other benefits
People said, the government’s provided the benefits in addition to the government’s incentives.
The trade ministry identified the top 50 industry clusters to upgrade their existing infrastructure, testing laboratories, and research and development facilities.
Emphasis placed on the development of sectors such as textiles, pharmaceuticals, food processing, and gems and jewelry. The ministry is also expanding the list to include services sectors such as tourism.