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'Goodbye Angel Tax': Rahul Gandhi tweets party's plan for startups if voted to power

The Congress scion also said that entrepreneurs will get fiscal and tax incentives depending on their ability to create jobs. These tenets will be a part of Congress manifesto, which is set to be released in April.

March 29, 2019 / 05:28 PM IST
Image for representation

Image for representation


Ahead of the 17th Lok Sabha elections due to commence from April 11, Congress President Rahul Gandhi has tried to woo young voters by making a slew of announcements that would help start-ups to grow and also generate jobs.

He reached out to the people through a tweet posted early morning on March 28.

As per his tweet new businesses will not have to seek any regulatory permission for the first three years and will also have easy access to bank credit.

He also said if his party is voted to power, he will abolish 'angel taxes' imposed on startups (tax levied on investment in startups).

Angel tax was introduced in 2012, by the then UPA Finance Minister Pranab Mukherjee to curb money laundering by small businesses. However, last year, PM Modi had clarified that no coercive action will be taken to recover money received through angel funding; he also set up a committee to look into the entire issue.

Next, we see that Rahul has said that promoting domestic industry will be a priority for the party. "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," Gandhi said.

Gandhi said he got this idea after he held discussions with multiple entrepreneurs, who pointed out their biggest problem was seeking permissions from different agencies before starting a new business.

However, this does give rise to basic questions of accountability, which remains to be addressed. Also, single window clearance and self-certification for start-ups isn't something new.

Additionally, Rahul said he believes it should not only be the likes of fugitive Nirav Modi who get thousands of crores as loans from banks. He stressed on the importance of giving loans to youngsters who promise to create jobs through their new enterprises instead.

The Congress scion also said that entrepreneurs will get fiscal and tax incentives depending on their ability to create jobs. These tenets will be a part of Congress manifesto, which is set to be released in April.



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