May 30: The government has announced a wide range of tax incentives and tax rebates in the budget presented for the fiscal year 2021-22. 

The government is providing 90 percent of income tax waiver to the taxpayers with an annual turnover of two million rupees. In the current fiscal year, the government is providing 75% of income tax waiver to the small cottage industries. 

In the upcoming fiscal year, taxpayers with an annual income of Rs two to five million will get tax waiver of 75 percent and taxpayers with annual income of Rs 5 million to Rs 10 million will get tax waiver of 50 percent. 

The government has announced that it will not charge additional fees against taxpayers paying tax within the stipulated time. Taxpayers are required to pay tax within mid-June and interest applicable to it by mid-Jan, 2022.

The government is waiving off VAT on the purchase of diesel and LP gas used for business enterprises. Similarly, people have been provided with tax and excise duty exemption on the production and distribution of oxygen gas, liquid oxygen, oxygen cylinder, oxygen concentrator, medicines and import of medicines. 

Excise duty applied on import of electric vehicles has been removed and customs duty has also been significantly reduced. Customs duty of induction cooker has been reduced to one percent and customs and excise duties have been reduced on refrigerator, grinder, rice cooker, fan among others. 

Customers will get an immediate refund of 10 percent VAT on the items purchased through the payment of electronic gateways like debit, credit cards, QR code and scan and pay.  

With an aim to protect the domestic industries, customs duty of raw material will be made one level cheaper than that of the ready-made goods. Similarly, customs duty waiver has been provided to the import of machines, equipment and parts being used by tea, jute, cinema, pashmina, and hatchery industries.

Startup business will be receiving 100 percent income tax waiver for the five years since the establishment of the business. If the private sector provides seed capital of Rs 100,000 the amount will not be taxable while calculating the tax amount. 

Meanwhile the government has increased excise duty on alcohol, beer, cigarettes and other tobacco items. The government has increased the capital gains tax on short-term capital market investors. Share investors selling shares before 365 days are applicable to pay 7.5 capital gains tax while long-term investors, selling shares after a year, will be subjected to 5 percent capital gains tax.