NEW DELHI: The government is looking at the option of providing budgetary support to units in proposed coastal employment zones (CEZs) that will create 10,000 jobs over three years and 40,000 in 10 years as the Modi administration looks at spurring job creation ahead of the 2019 elections.
The incentive, part of a package proposed by a panel headed by NITI Aayog CEO Amitabh Kant, has recommended that only two of the four states that have offered land for setting up CEZs — Gujarat, Andhra Pradesh, Maharashtra and Odisha — be selected through a "challenge".
A budgetary support, which the finance ministry has to agree to, will do away with tax incentives that have become the norm of sorts. The committee said that the budgetary support will be linked to the taxes paid by the unit in the CEZs and it will be equal to 100 per cent of taxes paid during the first seven years. For the eighth to the 10th year, it will vary between 85 per cent and 95 per cent of the taxes paid, sources told TOI....Read more
Source web page:Times of India