Rajasthan CM proposes several relieves for industry in state budget; MSMEs, Start-ups to benefit
Jaipur, Feb 13 (KNN) In a move that would bring huge relief to the small industries, Rajasthan Chief Minister Vasundhara Raje has proposed, in the budget, to reduce stamp duty for several transactions and full exemption of interest rates and penalty on unpaid stamp duty. Moreover, the CM has proposed to do away with stamp duty on loans for startups and under Mudra scheme.
The proposal comes despite the states have not much options to extend tax relief post GST.
Commending the proposal, several industry bodies have said the reduction of the stamp duty, registration fees will provide tax relief of Rs 650 crore and the budget has no new taxes, industry said.
Raje had said the loans for startups and under Mudra scheme will not attract any stamp duty. Similarly, duty on bonds will be reduced to 0.15% to maintain parity with the rates charged for loan agreement and mortgage without possession.
According to industry experts, the stamp duty exemption for startups and Mudra scheme loans for non-corporate small business up to Rs 10 lakh would be a relief to budding entrepreneurs.
The operating period of RIPS 2010 (Rajasthan Investment Promotion Scheme) and RIPS 2014 has been increased to March 2020 and March 2021, respectively which is expected to benefit large number of industrial units which invested in the state factoring in tax incentives.
The chief minister also proposed to establish CETP (common effluent treatment plants) at various industrial areas with support from RIICO and Pollution Control Board which will create Rs 100 crore fund with 50% equity coming from both the organisations.
Incentives to MSMEs for ZED scheme, credit ratings and energy, water and safety Audits are expected to help raise their competitiveness.
In order to promote employment to bonafide residents of Rajasthan, the budget also proposed to increase employment subsidy by Rs 5000 in various categories which will encourage companies to hire local youths.
Industrialization in backward areas is a challenge for the government. To encourage industries to look at such areas, Raje proposed to extend infrastructure support subsidy of Rs 5 crore on investment of Rs 50 crore. (KNN Bureau)