Minimum Alternative Tax causes hindrance in development of SEZS
The recent union budget had completely missed on addressing the issues of Special Economic Zones. This had been a matter of concern in this sector. A section of special economic zone promoters in Kerala were highly disappointed because the demand they had put forward of scrapping the minimum alternative tax or MAT had completely been ignored by the finance minister, Arun Jaitley.
However other officials were optimistic as the finance minister spoke that they were thinking in reviving the SEZ schemes. The union commerce ministry’s board of approval or BoA on SEZs are scheduled to meet on the 24th of July. But the promoters in industrial sector in Kerala are not interested on discussing about SEZs.
The union budget has no specific mentions on the cutting down of tax budgets for SEZs. The indication that this sends out is that no one is aware of what the revised policy will grant. KM Chandrasekhar, the chairman of the board on state planning mentioned that there is a lot of focus on the manufacturing sector and the sector of finance for reforms such as tax administration and bank capitalization. They hope that post these reforms there will be an upsurge in these sectors.
Source: The Times of India
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