Skip to main content

Fresh Sops Unlikely for New Japanese Industrial Enclaves

By
Govt keen to weed out exemptions & lower corporate tax to global rate of 25%
With the government keen to weed out exemptions and lower the corporate tax rate to an internationally comparable 25%, it is not willing to give any fresh ones. As a result, the proposed Japanese enclaves for industries have hit a tax wall with the revenue department making it clear that it cannot offer sops against its overall philosophy of ending them.
This issue figured in an inter-ministerial meeting called by Niti Aayog, said a government official aware of the matter.
“The revenue department is not in favour of taking up any fresh ex emptions,“ the official said. The final decision will be taken at the highest level.
The industrial townships are envisaged as integrated industrial parks with readymade operational platforms having world-class infrastructure, plug-and-play factories and investment incentives for Japanese firms. This is part of the Japanese govern ment's initiative to double investments in India to about $35 billion in the next fi ve years and streng then bilateral econo mic ties.
The government has already unvei led its plan to remo ve corporate tax ex emptions and bring down the rate to 25%.
The Budget this year took the first step in that direction, announcing sunset dates for special economic zones and accelerated depreciation, the biggest exemption. These are estimated to have caused tax losses of Rs.43,900 ,RS.17,600 crore and ` crore in FY16, respectively.
An exception was made for startups as part of Start Up India initiative, allowing a three-year tax holiday thanks to the Prime Minister's Office backing it.
The government is wary of allowing fresh tax holidays that will dent the overall plan that rests on minimal exemptions, an orderly structure and a low rate.
The nominal tax rate for Indian companies is 30% plus 12% surcharge, but the effective one is 24.67% due to exemptions.
The Budget has also allowed a new regime for manufacturing companies that start business after March 1, 2016. They can pay a tax rate of 25% while not availing of any exemption.
India is eyeing overseas investment to boost growth and job creation. It has liberalised the foreign investment regime in many sectors such as insurance, defence and single-brand retail while putting others on the automatic route.
The Economic Times New Delhi, 22th July 2016

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more