Congress President Rahul Gandhi said that new ventures will obtain a three-year blanket pass and easy access to bank credit if his party is voted to power. He also promised to remove the ‘angel tax‘ that is imposed on the investment made by such new ventures. Currently, a maximum of 30 per cent angel tax is charged.
In addition, the entrepreneurs of the start-ups will receive incentives and tax credits depending on their ability to create jobs, said Rahul. He added that promoting domestic industry will be a key priority for the Congress and it will ensure that all the start-ups will be freed from the clutches of red-tapism to give a fillip to the economy.
“For the first three years of setting up a new business, we are going to free you up from red tape. You will not need to ask for permission for anything,” he said. These proposals, Rahul said, will be included in the Congress’ manifesto for the Lok Sabha elections which will be released early next month.
“Don’t bother about anything, there is no permission you need. Start your business, get to work,” he said to encourage young entrepreneurs. “We’ve said that we will remove the draconian and ill-conceived angel tax. I’ve made that commitment and it’s going to be done,” said Rahul. This “powerful idea” came after he held discussions with several entrepreneurs, who claimed that their biggest problem was getting permissions from different agencies before starting their enterprises.
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. “Solid incentives and tax credits will be given to new entrepreneurs based on how many jobs they create,” the Congress chief said.
Meanwhile, the Congress is putting together a manifesto after several rounds of discussions with stakeholders and voicing their suggestions in the party’s manifesto, including things to promote business, farming and employment generation.