The government has proposed to extend tax holiday scheme until June 2019 with a view to creating an investment-friendly atmosphere.
The scheme was scheduled to end on June 2015.
Along with the facility, Muhith also proposed to reinstate the facilities for accelerated depreciation alternative to tax holiday for new industrial entrepreneurs. The government also proposed area-based tax rebate in the proposed budget.
According to the proposal, tax rebate for the industrial undertakings not eligible for tax holiday facilities in the least developed areas will enjoy 10% tax rebate till June 30, 2019.
Tax rebate for the industries not eligible for tax holiday facilities and to be set up between July 1, 2014 and June 30, 2019 in the least developed areas will be 20%. They will enjoy the facility for the next 10 years from the date of their commencement, the proposal added.
The minister also proposed 20% tax rebate for the industrial undertakings that will be shifted to least developed areas between July 1, 2014 and June 30, 2019. They will enjoy the facility for the next 10 years from the date of their commercial operation.
Earlier, such facility was in place for seven years.