Budget set to propose VAT exemption for startups, content creators and freelancers
The national budget is scheduled to be presented later today (11 June), and the proposals remain subject to change before the final announcement
The draft FY2026-27 budget speech obtained by The Business Standard proposes a set of VAT incentives for startups, content creators and freelancers in a move aimed at supporting entrepreneurship and the country's growing digital economy.
According to the draft speech, startups would be exempt from the 15% VAT currently applicable at the local level. The government also proposes waiving the 15% VAT on services imported by startups and on the rental of premises and facilities used by startup enterprises.
The proposed VAT exemptions for startups would remain in effect until 30 June 2035, according to the draft speech. The draft budget proposes full exemption from the 15% VAT imposed on services provided by content creators and freelancers.
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The incentives are expected to reduce operating costs for digital entrepreneurs and independent professionals, while encouraging innovation and business creation in emerging sectors of the economy.
The proposals come at a time when freelancing, content creation and startup ventures are becoming increasingly important sources of employment and income generation, particularly for young people.
