Introduce rebated income tax for SMEs


 

Industry body FICCI has suggested major steps for the welfare of small and medium enterprises (SMEs) in their 12-point agenda for the new government released on Monday.

FICCI has emphasised that the new government of the BJP-led NDA should introduce rebated income tax for small start-up businesses, in essence individually owned.

"Rebated Income Tax for small, start-up businesses linked to employment creation is required," suggested the FICCI statement. Apex body unveils its wish list for the new government at a press conference in New Delhi on Monday.

"There is need to link tax benefits to direct employment by the start-up business," it said

Precedence in example of Singapore and China, it said that of Indian scheme could be called START (= STArtup Rebated Tax). Tax benefit will be for defined rebate proportion (say 33-50 percent) and period (say 3-5 years), added.

"The Nation has very clearly voted for development. FICCI congratulates PM-Elect Sri Narendra Modi for the overwhelming mandate received from the largest elections ever held. Sri Modi has charted a dynamic vision with determination to lead from the front. We look forward to renewed trust, sound governance and decisive actions as enabling factors to address needs and aspirations of both our entrepreneurs and youth" Sidharth Birla, President, FICCI.

"Even as the Union Budget is a ripe opportunity to spell out key policies, fiscal imperatives and plans for implementation, the interim weeks must be liberally used by our Leadership to project its vision and set a progressive tone and direction. We also hope to see measures on inflation mitigation and restoring confidence, besides road maps on job creation and national competitiveness".

"Mission-mode actions and bold decisions are most likely to deliver tangible outcomes over 6-24 months" added Birla.

FICCI has made certain suggestions via our agenda for Enabling India. FICCI assured the Government of its untiring efforts and participation in developing positive policies leading to job creation and growth across regions and sectors - particularly manufacturing".