WIDE RANGES of concessions are offered for promoting industrial
growth. Deduction of preliminary and pre-operative expenses in setting
up a project, deduction of 30 per cent of gross total income for
10 years for new industrial undertakings. Full exemption of profits
from exports.
SUBSIDY FOR THRUST SECTORS
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Electronics
*
Rubber products
*
Leather products
*
Light engineering
*
Food processing
*
Manufacturing of drugs
*
Garment manufacturing
*
Clay & silica based industries
Full or part exemption of foreign exchange receipts from construction
projects, hotels and tourism allied services, royalties and commissions.
5-year tax holiday, within the first 8 years of commercial operations,
for 100% export oriented units and units in the Free Trade Zones.
5-year tax holiday for profits from new power projects. 5 year tax
holiday for building, maintaining and operating infrastructure projects
For new industries a seven year sales tax holiday is given in addition
to impunity from purchase tax, surcharge and central sales tax.
The exemption is fixed at 100 percent of the total capital.
Intensive for Growth Scheme is another proposition by which
the industrialists are encouraged to collect tax and forward it
to government, which will be adjusted against the credit, they have
procured from financial institutions.
For new industrial establishment's, priority is given for power
connection and they are offered subsidy for energy and exemption
from energy duty.