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Budget 2020: Startups will be focus area for the govt, says Commerce Minister Piyush Goyal

startup | IST

Budget 2020: Startups will be focus area for the govt, says Commerce Minister Piyush Goyal

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The bigger message that the honorable finance minister has given is that we recognize that in the emerging new age world where technology plays an important role, innovation plays an important role, startups will also be a focus area of the government of India, said Commerce Minister Piyush Goyal.

Discussing some aspects of the Union Budget 2020, Piyush Goyal, Minister of Commerce and Minister of Railways said, “The important thing is that the startup world has been recognized as an important pillar. Not only have the ESOPs been given to time but also turnover clause limit for startups has been increased from Rs 25 crore to Rs 100 crore. The period of eligibility for claiming their income tax benefits has been increased from 7 years to 10 years. They can get the income tax benefit once they have come into track, once they have improved their operations.”
“The bigger message that the honorable finance minister has given is that we recognize that in the emerging new age world where technology plays an important role, innovation plays an important role, startups will also be a focus area of the government of India,” he added.
Furthermore he said, "Startup ESOPs will be charged at the point of sale or at the end of five-year whichever is earlier."
On customs duty hike, Goyal said, “The honorable finance minister assessed all those items which we had said are being imported very often through indirect subsidies in foreign countries, which we are not able to countervail in India. Very often because of certain flexibilities in the FTAs which were decided 10 years ago, we have goods which are coming into the country. So the honorable finance minister has done a plethora of steps for those which come in through the FTA route, but circumvent country of origin rules or do not necessarily have equivalence with Indian taxes, she has confirmed that she will be taking action on those goods separately.”
"She has in a way addressed the concerns of domestic industry through several steps in different directions," he said, adding that going forward they would keep assessing the import basket, whether any of the products are unfairly imported into the country.
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