, 13 tweets, 4 min read Read on Twitter
Successive Congress Govts at the Centre never incentivised job creation. They only incentivised capital investment by subsidising it by income-tax incentives like investment allowance(Sec 32A/32AC), investment deposit account(Sec 32AB) & subsidies
Mind you, India is labour abundant and capital scarce. Yet successive Congress Governments at the Centre gave industry perverse incentives to substitute labour with machinery. Not one section in Income-Tax Act was enacted to incentivise job creation
Which Govt first enacted a section in Income-Tax Act,1961 to give tax incentives to job creators? Hold your breath. It was the Vajpayee Govt which inserted #section80JJAA Deduction in respect of employment of new workmen vide Finance (No.2)Act,1998
Yes....the Vajpayee Govt was the first Govt to announce tax incentives for creation of new jobs ...30% additional deduction of additional wages to new employees in addition to regular 100% deduction u/s 37 .Why BJP spokies on defensive in jobs topic? Why?
That worked out to 130% of additional wages paid to new workers recruited. Only that this incentive was available only to manufacturing sector. Manmohan Singh Govt further restricted the scope of incentives by restricting it to Companies only
Restriction by MMS Govt was imposed in 2013 ostensibly to reduce fiscal impact and control fiscal deficit. Imagine..first Congress doesnt enact any tax incentives for job creation but when BJP enacts one, the succeeding Congress Govt curtails its scope!!1
Modi Govt completely rewrote #Section80JJAA in 2016 and extended tax incentives to all sectors..be it manufacturing or services and be it corporate employer or non-corporate employer. Tax incentives available only for creating formal jobs with PF benefit
As a result of rewritten #Section80JJAA, the Form No.10DA audit reports obtained from CAs and e-filed by businesses, when aggregated,will give formal jobs created across all sectors by corporates and non-corporates
Modi Govt also brought the Pradhan Mantri Rozgar Protsahan Yojana wherein Govt will bear PF & EPF contributions of new employees for first 3 years. If you avail PMRPY, you cant avail #80jjaa.
Aggregate #80JJAA data and #PMRPY and you get a fair picture of formal jobs created at least from Financial Year 2016-17. (For earlier financial years, 80JJAA covered only manufacturing sector and PMRPY was also not there)
So, despite enacting two incentives for job creation...#80JJAA and #PMRPY, BJP gets all the brickbats while Congress which subsidised substitution of labour with capital with tax incentives for capital investment gets away with abusing BJP
Not only did Congress not incentivise job creation , it creative disincentives for job creation with clumsy labour laws
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