New Delhi: The abolition of the angel tax in the latest union budget has elicited widespread praise from startups and investors globally. The angel tax, traditionally levied on investments made in startups, was often criticized for potentially inflating investment valuations and burdening new businesses with additional tax implications.
Finance ministers removing this tax aim to foster increased investment in startups, alleviate financial pressures on emerging businesses, and spur innovation. This move is viewed as a significant boost for the entrepreneurial ecosystem, facilitating easier fundraising for startups.
Assam Chief Minister Himanta Biswa Sarma tweeted, “#UnionBudget2024 includes several progressive measures, such as the review of the IT Act and the withdrawal of Angel Tax. Reducing the fiscal deficit and sustaining capex will ensure India remains the fastest-growing economy for years to come.”
Former Finance Minister P. Chidambaram expressed his approval, stating, “I am pleased to hear that the FM will abolish the Angel Tax. The Congress has long advocated for its removal, as highlighted in our recent manifesto.”
Rajarshi Sharma, Chief Operating Officer of Assam Start Up, remarked, “One of the most anticipated changes is the complete abolition of the angel tax. This tax has been a major obstacle for the startup ecosystem. Its removal is expected to attract more angel investors to support budding entrepreneurs.”
Dr. Debatanu Barman, founder of Dr Aqua Solutions, noted, “This move aims to enhance innovation and attract investments, addressing significant funding concerns from 2023. It will have a profound impact on startup ecosystem growth and boost our economy.”
Surya Prakash Borthakur, founder of Deroi Tea, added, “The abolition will definitely benefit new startups, especially those in the pre-revenue or early traction stages. We hope it encourages investors to support startups in tier 2 and 3 cities, rather than concentrating resources in tier 1 cities.”
Ritesh Kanu, founder of RC Hobbytech Solutions Private Limited “The abolition of the Angel Tax in Budget 2024-25 is a game-changer for the Indian startup ecosystem, paving the way for increased investment and innovation. This landmark decision will create a more favorable environment for startups, encouraging both domestic and foreign investment, and fostering a culture of innovation and entrepreneurship in India.The removal of the angel tax is seen as a crucial step in making India a more attractive destination for global investors. The elimination of the angel tax will significantly benefit small and medium enterprises (SMEs), emerging brands and startups. This decision is expected to attract more investment and create a more favorable environment for innovation and growth in these sectors.”
Indu Singh, General Secretary of the NEWEA's Central Committee and Vice President of its Guwahati Chapter of North East Women Entrepreneurs Association (NEWEA) “ "The abolition of angel tax for women entrepreneurs in North East India and Assam is a strategic move that acknowledges the crucial role women play in driving economic growth and innovation. This move empowers women entrepreneurs by removing barriers, encouraging them to start their own businesses and fostering a culture of entrepreneurship. It also boosts regional development by bridging the economic gap and stimulating local economies, leading to more inclusive growth. Angel tax abolition also promotes innovation by attracting investors and encouraging startups to flourish. It also levels the playing field for women entrepreneurs, providing them with the necessary advantage to succeed. This initiative aligns with the United Nations' Sustainable Development Goals, particularly Goal 5 (Gender Equality) and Goal 8 (Decent Work and Economic Growth)".
FIRST Business Portal addressing the potential of business capability of North East Region.
