We would expect government to focus on minimizing indirect taxes and not imposing retrospective taxes. The industry would also certainly like to see a pro-investor tax policy and avoidance of double taxation for foreign investors to enhance investments in the country.
In order to boost the Start-up ecosystem, we have 4 suggestions for the government. Firstly, it should adopt tax policy framework of countries like Singapore and New Zealand for faster growth of Start-ups. It should also avoid ‘Angel Tax’ which negatively impacts the fund raising activities of Start-ups as they have to dilute more stake to cover the tax amount. Thirdly, there should be a structured disbursement of the incubation fund as a streamlined process. Lastly, Government should review Companies Act to make it simpler and less expensive for Start-ups to maintain compliances.