Business Line ( 05 Sept 2016 ) carries a news report
titled :
"
Start ups
may get a Booster Shot of fresh incentives "
It says :
" An inter-ministerial committee
headed by DIPP Secretary , Ramesh
Abhishek , and comprising senior officials from the NITI Aayog and from
Ministries and Departments such as Finance, Labour , Environment , HRD and MSME
, will meet within a fortnight to discuss a possible new stimulus for Start ups
The official said ,
We will to push for some more tax incentives in addition to the three year
tax holiday, lower compliance requirements especially in labour and taxation
and a relaxation in listing norms
The line Ministries will take forward
what the inter-ministerial committee feels is feasible so that the new rules
can be worked out . We are examining the tax policies of countries such as
Argentina , Australia , Chile , Finland and Israel "
Considering that nearly ONE YEAR after the launch
of the Start Up
initiative , so far only 3
Start Ups have managed to qualify for the tax holiday , this is very
good news
But trying to compare what other
countries have done to boost their Start Ups , has only , a very limited learning !
We have,
# A history of 60 years of total neglect of the Start Ups , under a license / permit raj
# 12 million young people joining our work force
each year ( with only 10 %
finding jobs )
# 3.5 million graduating from colleges , each year (
of which , only 20%
are found " Employable
" by industry )
I once more request the Committee - and the concerned
Ministries - to find a " Productive Vent " for the enormous / volatile
energy , trapped inside this " Volcano of Unemployed Youth "
My own suggestions are contained in my following blogs
( sent earlier as email concerned Policy Makers ) :
--------------------------------------------------------------------------------------------------------------------------------
Saturday,
16 January 2016
Thank you , Narendrabhai , for the Start Up Action Plan announced last evening
I am glad that some of my suggestions ( sent to Ministers /
Secretaries ) over the past 2 years , have been incorporated in the ACTION PLAN , in respect
of :
* Self Certification
* Simplified Registration thru Mobile App
* Tax Exemption for Capital Gains
* Entrepreneurship Program for 10 lakh
students
* No Corporate Income Tax for 3 years
* No Corporate Income Tax for 3 years
You will find my detailed suggestions covering these
points in following blogs at :
www.hemenparekh.in :
( http://myblogepage.blogspot.com/2015/09/from-job-seekers-to-job-creators.html
)
( http://myblogepage.blogspot.in/2015/09/back-factory-of-world.html )
( http://myblogepage.blogspot.com/2015/12/blue-print-for-start-up-nation.html )
( http://myblogepage.blogspot.com/2015/12/creating-jobs-vs-creating-self-employed.html )
( http://myblogepage.blogspot.com/2015/12/get-out-of-way.html )
( http://myblogepage.blogspot.com/2015/10/ten-million-entrepreneurs.html )
( http://myblogepage.blogspot.com/2015/10/start-up-eco-systems-usa-vs-india.html )
( http://myblogepage.blogspot.com/2015/09/treading-beaten-path.html )
( http://myblogepage.blogspot.com/2015/09/second-industrial-revolution.html )
( http://myblogepage.blogspot.com/2015/09/from-single-window-to-single-day.html )
( http://myblogepage.blogspot.com/2015/09/myth-of-job-creation.html )
( http://myblogepage.blogspot.com/2015/09/killing-many-birds-with-one-stone.html )
( http://myblogepage.blogspot.com/2015/07/if-mohamed-cannot-go-to-mountain.html )
( http://myblogepage.blogspot.com/2015/12/ditch-historical-baggage.html )
( http://myblogepage.blogspot.com/2015/02/create-self-employment.html )
Very likely , your initiative may see the birth of ten thousand
new start-ups in 2016-17, which , together , might generate one lakh jobs
In itself, this will bring a new dynamism to India's
Economy
But that will still fall far short of 12
Million ( 120 lakh ) youth joining the work-force each year
Can all of these youth become Start Ups ?
It is entirely possible
All you need to do is to implement my following suggestion,
described in ,
" A New Economic
Order / Start Up Act - 2015 " / 12 Sept 2015 " :
SUGGESTION
* Although all Start Ups will need to
file annual Income Tax returns ( with full disclosure of income / expenses /
profits / sources of funds etc ) , it will not be required to pay any Corporate
Income Tax for the first 10 years of its existence
* A Start Up will be free to raise
funds from any source ( Individuals / Companies / PE funds /
VCs / Angel Investors / Religious Trusts etc )
* 100 % FDI will be
permitted in Start Ups
* A Start Up can receive loans or
equity and be able to accept fixed deposits . It can also give loans to
individuals or other Start Ups or invest in other Start Ups by way of equity
* There will be no restrictions on what interest ( on loans /
FDs ) that a Start Up may pay nor any restrictions on dividends it
may declare
The dividends declared by Start Ups will not attract any Income Tax
* As far as the persons / companies etc
providing funds to Start Ups ( by way of loans or equity ) is concerned
, no questions will be asked re their source of funds
WHAT WILL HAPPEN , IF
IMPLEMENTED ?
* Billions of rupees worth Black Money
will flow into these Start Ups - money which is currently lying unutilized or
locked up in unproductive assets
* Within 3 months , thousands of Venture
Capital Funds will be born , exclusively for funding of Start Ups ( You know who
will set up these VCs ! )
* With NO Income Tax to be paid , Start
Ups will conduct all transactions through cheques ( receipts / payments )
* GST collections will go up
* Domestic Savings Rate will
go up
* Since millions of ( Black Money
holding ) individuals / businesses will come forward to fund these Start Ups ,
lending pressure on banks will go down
* Who knows , Start Ups may get into
the business of Assets Reconstruction and relieve banks of NPAs !
* With locally / domestically stashed Black Money flowing into the
economy , our dependence on FDI will go down
* Corruption will decline drastically
Dear Shri Narendrabhai :
It is still not late to incorporate my suggestion in forthcoming
Union Budget on 29 Feb 2016
This is your opportunity to ,
* Dream BIG
* Enable millions to dream big
* Unleash the Entrepreneurial Genome of India's
Youth
* Make 21st Century , an Indian Century
* notwithstanding the opposition in Rajya Sabha
--------------------------------------------------------------------------------------------------------------------------------
05 Sept
2016
www.hemenparekh.in
/ blogs
