Commerce and Industry Minister Nirmala Sitharaman on Monday hinted that the government was likely to come out with incentives including tax-related ones for start-ups in the upcoming Union Budget.
Her ministry, she said, had been pushing for raising the tax holiday for start-ups to seven years from the current three years. “That suggestion we have given to the Finance Ministry. We have to wait. Let’s see what this Budget is going to offer,” she said.
Ms. Sitharaman was participating in an event to mark the first anniversary of the Start-Up India initiative. A suggestion to exempt start-ups from the minimum alternate tax had also been forwarded to the Finance Ministry, she said, adding that the government was looking to do away with the legislative hurdles faced by start-ups.
The Centre is also roping in States and local authorities to look into issues relating to local taxes and other problems that trouble start-ups.
The Department of Industrial Policy and Promotion (DIPP) will shortly hold a meeting with the RBI, banks, SIDBI and venture capital funds to discuss the hurdles on start-up funding. DIPP Secretary Ramesh Abhishek said while many States were bringing in policies to boost start-ups, they needed to do more.
“We are also involving corporates and banks to support start-ups. Nothing is cast in stone and we can rework at the definition of start-ups. We are also working on extending easy funding to start-ups and providing a suitable environment,” he said. Several top companies had been asked to use their corporate social responsibility funds to help start-ups. States were looking to ease labour and environment norms for start-ups, he added.
Ms. Sitharaman wanted start-ups to enter into segments such as waste management, fuel aggregation, animal husbandry and veterinary science.
“I also want them to look at how we can make our existing cities smart,” she said. A virtual hub, which will be a one-stop solution platform for queries and serve as a ground for investors, incubators and start-ups, will soon be unveiled.
