New Delhi, May 20 (KNN) Introduce rebated income tax for small start-up businesses, in essence individually owned, said an industry body in its 12 point agenda for the new government, adding that there is a need to link tax benefits to direct employment by the start-up businesses.
Federation of Indian Chambers of Commerce and Industries (FICCI) has suggested major steps for the welfare of the industries including small and medium enterprises (SMEs) in their 12-point agenda for the new government.
It also suggested that the government introduces rebated income tax for small start-up businesses, by taking precedence from Singapore and China. The Indian scheme could be called START (= STArtup Rebated Tax).
The industry body has proposed that the new government should set up a task force to review the labour laws.
“In the context of integrating growth and manufacturing agendas with job creation, equity for workforce and employer must be provided to discourage 'shopping for loopholes' by all concerned, i.e. labour, business and government,” FICCI said.
“New laws must moderate the tendency towards greater capital intensity,” it added.
India needs to be seen as a nation of enterprise and skills, not pervasive and persistent aberrations, the industry body said.
It further pointed to some key needs for going forward such as - alleviate food inflation- better production, distribution and proactive moves can help; build confidence, for business and for trust of society - articulate and act accordingly; effective decision making/implementation - empowerment and accountability, use of technology; and job creation in every sector of the economy.