Indian Space Association (Ispa) has sought GST exemption for satellite companies and providing tax holiday in the Union Budget 2024-25 with a focus on enhancing the financial well-being of the industry. “Expand GST exemption to satellites, launch vehicles and ground equipment manufacturing. Provide tax holidays and exemptions for space sector firms. The Delhi-based group also said that a clarity on foreign direct investment (FDI) policy for the space sector, introducing production linked incentive (PLI) scheme for space-grade components and adopting space tech solutions across domains like agriculture and disaster management. It also demanded lowering the tax rate to 5% on external commercial borrowings along with capital subsidy on infrastructure investments.

Source: Economic Times January 24, 2024 13:08 UTC