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Tax Incentives

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
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 Rubber products
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 Leather products
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 Light engineering
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 Food processing
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 Manufacturing of  drugs
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 Garment  manufacturing
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 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.


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