Removal of MAT on SEZ Developers, Units- Demand from the upcoming budget
In order to revive the slump in the industries and safeguard the interests of the MNCs and large conglomerates, Corporate India has requested the Finance Minister Arun Jaitley to exempt special economic zones (SEZ) developers and units from the levy of minimum alternate tax (MAT). The previous government did not pay any heed to this request however the industries hope that the new growth friendly Modi government might listen to their plea.
India Inc. is once again making efforts to get this duty out of the income tax law in respect of SEZ developers and units. SEZ developers are hopeful that the MAT levy would be removed in the upcoming budget. A senior industry representative who attended the pre-Budget meeting with Jaitley recently mentioned that their demand is to remove MAT totally for SEZ developers and units. For others they have requested the MAT rate should be scaled down to about 10%.
The previous government in the budget 2011-12 imposed MAT of 18.5 % on SEZ developers and units. The current MAT rate is 20.96 % and is applicable on book profits. Looking at the current fiscal situation, this demand may not be met and Jaitley is not expected to deliver a populist Budget.
Source- The Hindu Business Line
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