Industries in Gujarat have spent generously during the second Covid-19 wave and stood by the authorities to create medical infrastructure, GCCI said.
The Gujarat Chamber of Commerce and Industry (GCCI) has demanded relief in income tax for units that have spent money to set up medical infrastructure to treat Covid-19 patients.
“Industries in Gujarat have spent generously during the second Covid-19 wave and stood by the authorities to create medical infrastructure. GCCI has suggested to the government of India to allow 100% depreciation under the income tax law in the first year on investment of medical equipment as well as creation of medical infrastructure in the treatment of Covid-19 patients,” Natubhai Patel, president of GCCI, said.
He said this will encourage the industry to further invest in helping people during the possible third Covid-19 wave.
Bharat Sheth, president of the Gujarat Federation of Tax Consultants, said the central government should provide relief on any expenses of assets made by industries related to Covid-19. It should allow 100% depreciation in the first year of investment. In case of any expenses on providing medical instruments and devices to hospitals, the government should allow 100% deduction under the head of donation without any limit or conditions, he said.
The GCCI has also written to Finance Minister Nirmala Sitharaman that industry associations and industrial units have started preparations to tackle the possible third wave of the pandemic in Gujarat. GCCI has started gathering support and commitment for investment in medical devices and health infrastructure to support the state government, it said.
“During the second wave … GCCI started an oxygen bank, set up a Covid isolation centre and undertook repairs of crematoriums in Ahmedabad. GCCI also donated 50 BIPAP machines to various government hospitals across Gujarat,” Patel said.