THIRUVANANTHAPURAM: Even while welcoming the centre’s Startup India Policy, the state has raised apprehensions over the three year tax holiday and lack of measures to check the trend of successful Startups migrating to foreign countries.
Various fund support schemes, ease in registration process, setting up of more incubators, Startup Hub and mobile app for Startup schemes are among a slew of initiatives to boost the startup sector.
Moreover, the policy defines startup as a new firm involved in developing a new product in any segment involving patenting or innovations.
A serious concern expressed by IT experts is over the three-year income tax holiday, citing that it was too short.
“It would take at least three years for a Startup to go commercial and hence the three year income tax holiday may not be of much relief,” said Kerala Startup Mission chief executive officer Jayashanakar Prasad.
State planning board member and technocrat G Vijayaraghavan said that income-tax holiday ranging from five to ten years, with some sorts of slabs, would have been ideal.
While hailing the policy as one which could offer good foundation to startups, Startup Village chairman Sanjay Vijayakumar said that it lacked measures to address the serious concerns over successful Startups moving out of the state.
“About 120 issues being faced by startups with regard to various government departments were identified. We hope these would be addressed at least in the coming budget,” said Mr. Vijayakumar who attended the Startup India policy launch in Delhi on Saturday.
“The centre should ensure utmost clarity in the policy so that it could be implemented in its letter and spirit,” said Mr. Vijayaraghavan.
