Union Budget: Space industry demands tax holidays, PLI scheme

Private space sector expects import holidays, GST exemptions, PLI, and government as a customer in Union Budget.

Import holidays, GST exemption for components of launch vehicles, productivity-linked incentives (PLI) and government stepping in as a customer are some of the expectations of the private space sector from Finance Minister Nirmala Sitharaman as she presents the Union Budget next week.

"More money for space-related acquisitions, tax holidays, import holidays, and PLI scheme for space," Pixxel Space co-founder and CEO Awais Ahmed told PTI when asked about his wishlist for the budget.

Industry bodies Indian Space Association (ISpA) and Satcom Industry Association (SIA-India) have sought greater government expenditure on the space sector in the form of an anchor customer for the nascent private sector.

"ISpA calls for a commitment from the government to procure and adopt space technology solutions across various governance areas such as agriculture, disaster management, infrastructure planning and development monitoring, urban development, and remote area connectivity," ISpA director general Lt Gen Anil . Bhatt (retd) said.

Mr. Bhatt also sought extension of GST waiver on satellite launch services to other critical components of satellites, ground systems, and launch vehicles.

He also wanted the finance minister to consider tax exemptions/tax holiday and custom-duty exemptions for space sector firms and reduction of tax rate on interest on foreign borrowings.

"The prompt implementation of the Space Activities Act is crucial for addressing legal and standards related issues, providing a clear regulatory framework for the industry," Mr. Bhatt said.