In order to improve economic situation of the country, the government has to introduce new provisions for industrialisation in the coming budget for 2011-12, analysts said. They said the current economic situation, which has progressively been deteriorating, needed strong and integrated industrial infrastructure for its revival. "Therefore, it is ample need to promote industrialisation by providing incentives for new entrants as well as existing players.
They said that tax on profits and gains derived by the taxpayers from a new industrial setup should be utilised for the development of basic infrastructure, and added that the investors should not be restricted to disclose the source of investment for new industrial setup.
Besides that, three-year tax exemptions should also be given to any industrial unit engaged in manufacturing of goods or material or produce or the subjection of goods or material or produce to a manufacturing process or mining excluding petroleum and gas. They said that level playing field should be provided to both local and foreign investors to promote competitive industrialisation in the country.
Moreover, they said, the specification of minimum period is also necessary to time bound the taxpayers in order to promote the industrialisation in true sense and to ensure the actual investment of capital in the country. Therefore, they have suggested that the minimum period of 90 days be allowed for the injection and investment of capital by a permanent establishment to install the equipment and machinery.