Govt to unveil new measures to revive SEZs
At the Commerce Department’s Wednesday briefing, in New Delhi, to mark ‘100 days’ of Narendra Modi’s government, Commerce and Industry Minister Nirmala Sitharaman said that new measures will soon be announced by the government to revive Special Economic Zones (SEZs).
In an apparent attempt to give the SEZs a new look, the government is working on several measures like allowing dual use of infrastructure. Moreover, as per Sitharaman, the government also plans to refocus the SEZs as exports and manufacturing hubs.
Sitharaman also said at the briefing that some adjustments in taxes are being actively considered by the Departments of Commerce and Revenue. These taxes in which adjustments are being made include minimum alternate tax (MAT) and dividend distribution tax (DDT) — levies which have substantially reduced attraction of the SEZs proposed for boosting exports.
In addition, dual use of infrastructure may also be allowed by the government in non-processing sectors for regular manufacturing. According to Sitharaman, dual use of infrastructure will pave the way for optimum utilization of SEZs.
In a statement pertaining to the government’s planned efforts to revive SEZs, Sitharaman said: “Specific issues related to SEZs are being discussed, be it the taxation part or SEZ dual use. The policy is not just for exporters but also other manufacturers.”
Source – The Economic Times
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