On 05 Feb 2016 , Economic Times carried a news report
titled :
Employers May Get Sops for Creating Extra Jobs
As per this report , NDA govt is expected to announce
following incentives for employers who create new jobs :
* 30 % tax
exemption for units that create an additional 2 % jobs
* Alternatively,
the hirer could be given a 125 % rebate on provident fund contributions
* Availability
of easy, cheap credit through interest subvention ( Subsidy ? )
Even as I await the budget speech of Shri Jaitleyji on
29 Feb for full details , I wish to thank Shri Narendra Modiji for considering
the CORE of my following proposal sent to him on 06 Nov 2014 :
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
To complete this ECO SYSTEM , we need to think " Out
of the Box " in the matter of Corporate Tax Regime , as well
Current trend in industry , all over the world , is to
> Add highly productive , very expensive machinery to
" Automate " all
manufacturing processes
> Reduce manpower by increasing " Capital / IT
Intensity "
> Hire low skilled workers by transferring higher
" Skills " to machinery
> Outsource manufacturing to countries where manpower
is cheap
> Move out of " Manufacturing " and shift to
" Services "
India cannot swim against this World-wide Trend
We must innovate, to not only survive but to grow in this
scenario
Here is my suggestion :
Set in motion , " INVERSION of JOB REDUCTION
" regime , under which ,
" The more jobs a company creates , the less
Corporate Tax it pays "
Example :
> Up to employment of 100 persons
............................... 30 %
> 101 - 500 persons....................................................
25 %
> 501 - 1000 persons
................................................... 20 %
> 1001 - 5000 persons
.................................................. 15 %
> 5001 - 10,000 persons .................................................
10 %
> Above 10,000 persons
................................................. 5 %
Let us celebrate those who provide employment to large number of
persons
Let us celebrate BIGNESS
Let us create hundreds of WORLD SIZE corporations and take on the World
On top of this , provide additional tax - breaks ( discounts ? )
to corporate as follows :
> Average Age of Employees at 30 years.......................
1 %
> Ave age at 25 years.................................................
2 %
> Ave age at 20 years
................................................. 3 %
Of course , very strict and transparent rules will need to be framed to
compute,
> Number of Employees ( Permanent - not probationers / trainees )
> Average Age ( as on 31 March of Tax year )......etc
But , here is an important aspect of this ," Incentivize Job Creation " Scheme :
Today's labour laws make it extremely difficult - if not impossible - for employers to layoff / retrench workmen , if demand shrinks
Hence , to take advantage of this Scheme , employers are unlikely to hire thousands of youth , if they cannot easily trim the workforce , to match the shrinking demand
So , an important corollary of this Scheme is to modify our existing Labour Laws to facilitate layoff / retrenchment , when situation so demands , while protecting the interests of the workmen concerned
Of course , very strict and transparent rules will need to be framed to
compute,
> Number of Employees ( Permanent - not probationers / trainees )
> Average Age ( as on 31 March of Tax year )......etc
But , here is an important aspect of this ," Incentivize Job Creation " Scheme :
Today's labour laws make it extremely difficult - if not impossible - for employers to layoff / retrench workmen , if demand shrinks
Hence , to take advantage of this Scheme , employers are unlikely to hire thousands of youth , if they cannot easily trim the workforce , to match the shrinking demand
So , an important corollary of this Scheme is to modify our existing Labour Laws to facilitate layoff / retrenchment , when situation so demands , while protecting the interests of the workmen concerned
And , last but not the least , permit each and every candidate -
and the political parties as well - to spend ANY AMOUNT on election campaigns ,
without any restrictions as also accept any amount of Corporate Donations
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
hemenparekh.in / blogs
07 Feb
2016
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Make
Yourself Heard
Dear Visitor :
It is time for YOU to speak up - and demand that YOU
are heard
By emailing this suggestion - incorporating your OWN
improvements - to the following Policy Makers
( Just multiple
copy all the following Email IDs into the Recipient column of your Outlook and
Copy / paste this suggestion in the Message Box ) :
narendramodi1234@gmail.com;
38ashokroad@gmail.com;ajaitley@del5.vsnl.net.in;
jayant.sinha19@sansad.nic.in;piyush.goyal@gov.in;nitin.gadkari@nic.in;
spprabhu1@rediffmail.com;bandaru@sansad.nic.in;smritizirani@nic.in;nsitharaman@nic.in;
ravis@sansad.nic.in;sureshprabhu@irctc.co.in;prakash.j@sansad.nic.in;secy-ipp@nic.in;
amitabh.kant@nic.in; shaktikanta.das@nic.in; rsecy@nic.in; adhia1981@gmail.com;
ceo-niti@nic.in; atul-chaturvedi@nic.in; uma.bharati@sansad.nic.in;
d.pradhan@sansad.nic.in; rprudy.office@gmail.com; rudypr@rediffmail.com;
eam@mea.gov.in; mosvks@mea.gov.in; mvnaidu@sansad.nic.in; mnaqvi@sansad.nic.in;
rao.inderjit@sansad.nic.in; mljoffice@gov.in; sadananda.gowda@sansad.nic.in;
ministerminority@gov.in; najmah@sansad.nic.in; minister-ca@nic.in;
ramvilas.paswan@sansad.nic.in; gandhim@sansad.nic.in;
akumar-alpha@sansad.nic.in; jpnadda@sansad.nic.in; hm.moca@nic.in;
geete@sansad.nic.in; simratbadal@yahoo.com; ns.tomar@nic.in;
rmsingh@sansad.nic.in; tc.gehlot@sansad.nic.in;
dr.harshvardhan@sansad.nic.in