MoCIT proposes 10-year tax holiday for projects attracting foreign investment under Make in India initiative

As part of its recommendations for the upcoming Union Budget 2016-17, the Ministry of Communications and Information Technology has proposed a 10-year tax holiday for mega projects aimed at attracting foreign investment for the Make in India initiative. According to the ministry, a 10-year tax holiday in a block of 15 years can help attract over $1 billion worth of fresh investments in the sector. The ministry also suggested extending the differential excise duty that is levied on mobile phones to electronic equipment such as network switches, routers and modems. These sops should incentivise domestic production of such components and help create an ecosystem for local manufacturing.

 

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