Rahul Gandhi: No angel tax, no permissions for startups

New Delhi: Rahul Gandhi, president of India’s main opposition Congress party, said his party will exempt new businesses from seeking permission and ease bank credit if it is voted to power.

The Congress will also scrap “angel tax,” a term used for the levy on fund-raising by startups, Gandhi said on Twitter. The party will also give incentives and tax credits to new businesses based on their ability to create jobs, he said.

He also promised easy bank credit if the party is voted to power in the Lok Sabha elections.

“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 & amp; tax credits based on how many jobs you create. 4. Easy Bank Credit,” Gandhi said in a tweet.

The move is seen as an effort by Gandhi to woo the youth ahead of Lok Sabha elections and keep the focus on economic issues.

Gandhi has been criticising the ruling BJP and Prime Minister Narendra Modi for failing to create promised jobs and the issue is a major poll plank of the Congress.

The promises are part of Congress plan to boost employment opportunities if it comes to power and provide a viable roadmap to achieve the objectives.

These incentives will be part of the Congress party’s manifesto, which has also promised income support of Rs72,000 ($1,046) annually to poor families. Startups will just need to register their companies and will not need any other approval to begin operations. They have a three-year window to get all the permissions.

Congress party is seeking to wrest power from Prime Minister Narendra Modi’s ruling coalition in the elections that will take place in seven phases between April 11 and May 19, with results to be announced on May 23.

Modi has been criticised by the opposition for not fulfilling his promise of creating 10 million jobs each year — a pledge that helped him win over India’s youth in the 2014 election. In the absence of timely and credible data, it’s difficult to estimate the number of jobs created during Modi’s term.

The promises are part of Congress plan to boost employment opportunities if it comes to power and provide a viable roadmap to achieve the objectives.