Congress plans to do away with angel tax and offer easy bank credits to startups. (PTI)
Congress chief Rahul Gandhi on Thursday unravelled the party's plan for creation of jobs - a field on which he has been unsparingly critical of the Narendra Modi government. In a tweet on Thursday, Mr Gandhi called upon entrepreneurs, offering them not only congenial rules but also incentives for the jobs they create.
"Youngsters, Want to start a new business? Want to create jobs for India? Here's our plan for you: 1. ZERO permissions for the first 3 years of any new business. 2. Goodbye Angel Tax 3. Solid incentives & tax credits based on how many jobs you create. 4. Easy Bank Credit," his tweet read.
In the run up to the elections, the Congress has repeatedly accused the government of failing to create jobs.
A section of entrepreneurs also maintained that the government's Start-Up India initiative, meant to boost entrepreneurship, has also fallen short of its objective. Part of the reason was the concern over the angel tax - a tax for start-ups that receive angel funding above their valuation.
Following protests, it was cancelled last month for start-ups recognised by the Department for Promotion of Industry and Internal Trade or DPIIT, the government body which addresses concerns of start-ups.
The Congress plan not only promises to ease the system for start-ups by cancelling the need for permissions for the first three years, it also plans to do away with angel tax and offer easy bank credits, the lack of which makes angel funds necessary.
For job creation, the party has promise tax credits and "solid incentives", although the nature of the incentives is yet to be revealed.
Though there are less than two weeks to go for the elections, the Congress is yet to come up with its election manifesto. The party is expected to release its manifesto in the first week of April.
But earlier this week, Rahul Gandhi announced the party's big-ticket pre-election promise - a dole of Rs 72,000 for 20 per cent of the poorest of the poor families across the country.
The party has said they have checked the feasibility of this programme with leading economists, including former Reserve Bank Governor Raghuram Rajan.
Under the plan, any family earning less than Rs. 12,000 a month will receive the difference, up to Rs. 6,000, in its bank account.