Congress President Rahul Gandhi on Thursday said start-ups will be exempted from any regulatory permission seeking process for the first three years if the Congress is voted to power in the upcoming Lok Sabha elections.
In an interview with PTI, Gandhi said Congress will abolish the existing “angel tax” that is imposed on start-ups and improve their accessibility to bank credit. Angel tax is the tax payable on capital raised by unlisted companies via issue of shares. In February, the Bharatiya Janata Party-led Centre had announced that startups will be exempted from “angel tax” on funds raised from investors in the last seven years.
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.
Gandhi said his party will prioritise domestic industry and try to remove red tape. “The first three years of setting up a new business, we are going to free you up from red tape,” Gandhi told the news agency. “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.
“The powerful idea” dawned on him during interactions with entrepreneurs who told him about the challenges they faced, he said. The entrepreneurs said different agencies ask lots of questions and bribes, Gandhi added.
“Why should only Nirav Modi get thousands of crores?” Gandhi said referring to the businessman accused in the Punjab National Bank scam. “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.”
On Twitter, Gandhi announced his party’s four-point plan to boost job creation in the country.