Which of the following is NOT considered an industrial concession? 

The correct answer is Subsidy to purchase goods and services.

Key Points

• Industrial concessions are typically measures provided by governments to promote industrial growth and attract investments.
• Tax concessions refer to reductions in taxes or exemptions provided to industries to reduce their financial burden and encourage development.
• Tax holidays are periods during which businesses are exempt from paying certain taxes, often to promote investments in specific sectors or regions.
• Subsidised power supply involves providing electricity to industries at reduced rates to lower production costs and boost competitiveness.
• Unlike the above, subsidy to purchase goods and services is generally not categorized as an industrial concession, as it is more aligned with consumer-oriented or welfare policies.

Additional Information

• Industrial Concessions:
  • These are measures like tax breaks, subsidies, and infrastructure support provided to industries to enhance their growth and competitiveness.
  • They are often part of government policies aimed at regional development, employment generation, and foreign direct investment.
• Tax Holiday:
  • A temporary period during which a company or sector is exempt from certain tax obligations.
  • It is commonly offered to startups or industries in special economic zones (SEZs).
• Subsidised Power Supply:
  • Governments often provide electricity at reduced rates to industries to lower production costs.
  • This concession helps industries become more competitive in domestic and global markets.
• Subsidies in General:
  • Subsidies are financial aid provided by governments to reduce the cost of goods and services for consumers or producers.
  • They can be in the form of direct payments, tax reductions, or reduced prices for resources.