In the high voltage election season in India, political parties are coming out with new promises and assurances. From Congress President Rahul Gandhi ‘s Minimum income guarantee scheme to those below the poverty line to Prime Minister Narendra Modi’s Main Bhi Chowkidaar campaign, election campaigning has reached a fever pitch in the last few days.
One of the many wishful campaign promises from Congress emerged when INC president Rahul Gandhi announced: “After 2019, Congress government will exempt young entrepreneurs from taking permission from the government for the first 3 years of the venture.”
Rahul Gandhi said new ventures will not require any regulatory permissions for three years and will get easy access to bank credit if his party is voted to power.
The Congress chief also promised to remove the existing ‘angel tax’ imposed on start-ups. Angel tax is levied on investment in start-ups. Angel tax is the tax payable on capital raised by unlisted companies via the issue of shares. At present, angel tax is charged at a maximum rate of 30 per cent.
The Congress president also said that his party will ensure that entrepreneurs get “solid incentives and tax credits” based on how many the jobs the companies plan on creating.
In February, the Bharatiya Janata Party-led Union government had announced that startups will be exempted from “angel tax” on funds raised from investors in the last seven years.
Gandhi said promoting domestic industry will be a key priority of his party which will try to remove red tape from the new businesses. “The first three years of setting up a new business, we are going to free you up from red tape,” Gandhi in an interview to a news agency.
Gandhi launched his plan for new enterprises with a tweet addressed to the youth.
“You will not need to ask for permission for anything.” He said the proposal will be included in the party’s manifesto which will be released in April.
Want to start a new business? Want to create jobs for India?
Here’s our plan for you:
1. ZERO permissions for the first 3 years of any new business.
2. Goodbye Angel Tax
3. Solid incentives & tax credits based on how many jobs you create.
4. Easy Bank Credit
— Rahul Gandhi (@RahulGandhi) March 28, 2019
Rahul Gandhi revealed that “powerful idea” came after he held discussions with several entrepreneurs, during which they stressed that biggest problem they face was getting all kinds of permissions from different agencies before starting their enterprises.
The entrepreneurs said different agencies ask lots of questions and bribes, and hence raised a common voice saying “we said, we believe in you; we trust you, and so for the first three years of setting up a new business, we are going to free you up from the red tape”.
These proposals, Gandhi said, will be included in the Congress’ manifesto for the Lok Sabha elections. The party is yet to come out with an election manifesto. The party sources revealed that its manifesto in the coming week.
Gandhi said the party is putting together a manifesto after indulging in several rounds of discussions with stakeholders and voicing their suggestions in the party’s manifesto, which will include many such things to promote business, farming, employment generation et al.
The Congress president said another idea that came up during discussions with entrepreneurs was the opening of the banking system to young business-persons and providing them access.
“Why should only Nirav Modi get thousands of crores? How many jobs has he created in India? Why can’t a youngster who wants to start a business, who wants to give India 2,000 jobs, get a bank loan,” he asked?
Rahul Gandhi, who has by far criticised economic measures including GST, demonetization etc have pointed out that if his party comes to power, it will make reforms to boost the economy. He said that Congress will abolish the existing “angel tax” that is imposed on start-ups and improve their accessibility to bank credit.