Indian Space Association (ISpA) has demanded the union government bring the space sector under Production Linked Incentive (PLI) Scheme. Among other pre-budget recommendations, it also asked for GST exemption for private satellite launch service providers and also sought exemption from Angel Tax.
The PLI scheme would promote space-related research and development in the country and also facilitate incentives to entities engaged in the sector, anticipated Lt. Gen. A.K. Bhatt (Retd.), Director General, Indian Space Association.
ISpA also asked for parity in treatment in terms of capital gains for shares of unlisted companies and financial support from the government through loans, grants and tax incentives, as per a statement released by the apex body on Monday.
“Considering that most space-tech companies in the country are startups and access to capital is an issue, it would be beneficial to create parity in terms of the short-term capital gains tax rate and treatment with respect to listed and unlisted entities,’‘ he recommended.
Overall, these measures would create a more favourable environment for companies and organisations operating in the space sector, as these would help investment, research and development, and employment generation, Mr. Bhatt added.
