Trade Ministry proposes a tax holiday for companies bringing new investments in the nation

Since the Indian economy has shrunk to a large extent due to COVID-19 pandemic induced nationwide lockdown, the government has resolved to privilege the companies bringing fresh investments by excluding taxes.

- Advertisement -

The trade ministry has suggested a complete tax relief for ten years for the firms investing more than $500 million. Currently, the proposal is being accessed by our finance minister.

Companies can only get the benefit of tax exemption if they begin their plan execution within three years from June 1. This will include medical equipment, electronics, telecom devices and capital infrastructure.

The ministry has also put forward a four-year tax holiday plan for those who can invest $100 million or more in industries like textiles, food processing, leather and footwear. Furthermore, there has been a 10 per cent tax reduction for the next six years. The advantages will be provided to the prevailing incentives by the government.

The Central Government led by the Bharatiya Janata Party is trying to allure investors leaving China by bidding different government benefits.

After the COVID-19 outbreak from the city of Wuhan in China, companies are trying to be less reliant on them and are thus finding an alternative in other countries.

- Advertisement -
- Advertisement -

Latest article