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Ministries propose fiscal, tax incentives for Make in India
January, 03rd 2015

The Prime Minister's Make in India plans are gathering steam, in fact a workshop was conducted on the December 29, 2014 to discuss the tax incentives to boost manufacturing.

Several fiscal and tax incentives have now been proposed by the ministries in presentations for Budget 2015 to the Prime Minsiter. As a CNBC-TV18 exclusive, Rituparna Bhuyan shares details of the tax breaks that are likely to be implemented.

Commerce Min proposal for MII include:
Cut gold import duty from 10 percent-2 percent in 1 year
Cut silver import duty from 10 percent-2 percent in 1 year
Cut polished gems import duty to 0 percent in 1 year
Cut pearls import duty from 10 percent to 1 percent in 1 year
Cut import duty on capital goods for gems and jewellery to 0 percent in 3 yrs

Oil Min proposal for MII include:
Oil industries development CESS
Oil industries cess Proposal in 1 year action plan for MII
Govt could collect Rs 10000 crore a year through oil industry development CESS
Fin Min to take final call on oil industry CESS
Reintroduce purchase preference for domestic equipment
Purchase preference to be reintroduced within 1 year
Oil and natural gas investment target at Rs 6-7 lakh crore in 3 years

Aviation Min proposal for MII include:
Exempt MROs from service tax within 1 year
Give infrastructure status to airlines within 1 year
Allow easier ECB norms and tax free infra bonds to airlines

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