The amended Companies Income Tax Act bill 2015 has been passed the second reading in the Senate on 16th November 2016. The Bill proposes to deliver the following extra tax incentives to companies:

  • Companies those are engaged in the mining of solid minerals and gas utilization from 3 years to 5 years can get the increased facility of tax holiday;
  • 10-year tax holiday is provided for new companies those are situated in areas without government-provided infrastructure;
  • Decrease of the distance rule from 20 kilometers to 10 kilometers for businesses located in areas without government-provided infrastructure and for qualifying rural investment allowance;
  • The rate of rural investment allowances will be 20% from 15%.
  • Cancel the investment tax relief, which is approved for unavailability of telephone infrastructure;
  • Investment tax relief will be increased to 20% from 15%.

Here, Government-provided infrastructure refers to electricity, water or tarred roads.