'Extend tax holiday for startups to 7 years'

As part of the government encouragement to budding entrepreneurs, the commerce ministry has suggested to the finance ministry to raise tax holiday for startups to seven years form current three years.

 Number of inputs from startups have been received and “recommendations have gone to the finance ministry for extending the three-year tax holiday to seven years”, Commerce Minister Nirmala Sitharaman told reporters here on Monday.

Earlier, several startups have demanded for increasing the tax holiday period from the current three years, as it would provide certainty on taxation matter.

For 2016-17, the allocation of Rs 1,100 crore has already been made and 35 new incubators have been established, she said.

FDI inflow
On foreign direct investment, she said that between June 2014 and January 2016, FDI equity flow has recorded a growth of 53% to $60.04 billion, from $39.19 billion during the preceding 20 months. FDI inflows in the country increased to the highest ever of $51 billion in 2015-16, she added. The minister also said the interest subsidy scheme announced by the government last year would boost exports, which are in the negative zone since December 2014.

 Till March 31, every amount given to the RBI has been completely utilised and the scheme was well received by exporters, she added. The finance ministry is also releasing the next tranche of the amount so that exporters benefit on time.

India’s stand in WTO
She also said India took a firm stand in the WTO’s Nairobi meet to safeguard the interests of farmers. Level playing field has been obtained for farmers.

On the Doha Development Agenda, Sitharaman said India completely reinforced and insisted that all the leftover agenda including reduction of overall subsidies by the developed countries should be fulfilled. She also said there is “absolutely” no threat for India to provide minimum support price to farmers.

The European Union wants to sort out some “misunderstandings” before resuming the talks on the long-stalled proposed Free Trade Agreement (FTA) with India. She also said that the two sides are yet to finalise the dates to resume the negotiations. She, however, did not specify what those “misunderstandings” were.
DH News Service