Chennai, Jan 24 (IANS): Production linked incentive (PLI) scheme for space grade components, exemption from good and services tax (GST), tax holiday, concessional custom duty, lower tax rate on external commercial borrowing and others are on the budget wishlist of the Indian Space Association (ISpA).
The ISpA is the lobby body for the private players in the Indian space sector.
According to ISpA, the GST should be exempted to satellites, rockets and ground equipment manufacturing as well as on procurement of key inputs.
As the space sector is capital intensive, the tax rate on external commercial borrowing should be lowered to five per cent.
The other requests made by ISpA to the Indian Government are:
Provide tax holidays and exemptions for space sector firms.
Concession on customs duties for notified imports.
Reduce satellite sector withholding tax from 10 per cent to 2 per cent given low profit margins.
Governments should commit to procuring and adopting space tech solutions across domains like agriculture, disaster management, etc.
Clarity needed urgently on foreign direct investment (FDI) policy for space sector and associated aspects.
Reasonable SUC (Spectrum Usage Charges) as percentage of adjusted gross revenue (AGR) for satellite services allocated non-auctioned spectrum under new Telecommunications Act, 2023.
Satellite operators should be permitted 25 per cent depreciation on one-time fee and licence charges to optimize tax impact.
Capital Subsidy on infrastructure investments with additional subsidy for facilities in remote areas, is proposed to spur manufacturing capabilities, launch infrastructure advancement and downstream space offerings growth in India's private space industry.
Lt. Gen. A.K. Bhatt (Retd.), Director General said: "We welcome the government's recent reforms and its ground breaking initiative to allocate satellite spectrum through an administrative approach. These initiatives undoubtedly have the potential to boost the nascent private space industry in India.
"Now, to propel this promising industry and drive innovation, it is crucial for the government to develop a comprehensive regulatory framework and address existing fiscal and taxation challenges. We urge the government to consider our recommendations for incentivising the growth of private space enterprises. By leveraging the momentum provided by the government and its visionary policy, these enterprises can deliver significant socio-economic benefits to the nation."