SEZ revival policies to be drafted soon: DIPP
The government is working towards restoring the concessions provided to special economic zones (SEZs). In the past few years the SEZs had lost their sheen due to various factors. The issue of minimum alternate tax (MAT) and dividend distribution tax (DDT) has been taken up with the finance ministry. Since these taxes were levied on SEZs, the industries were not keen to take up office spaces in SEZs anymore.
Amitabh Kant the secretary of the department of industrial policy and promotion (DIPP) stated that in the next 3-4 months, SEZ policy will be finalised and some of the benefits will be restored. This is very much required to give a boost to the ailing industries in the country.
The secretary, who was speaking at the curtain-raiser of Vibrant Gujarat summit to be held next year, said that the government would bring in consistency in SEZ policy to revive them.
Earlier, Prime Minister Narendra Modi had said that a high-level team has been set up to review and resolve the problems faced by SEZs. There are many SEZs in the country which are lying unoccupied. The ones which are occupied have very less occupancy levels. This has increased burden on the developers of the SEZs as they have not got their returns on investments and the rental incomes are very low.
The UPA-II government had levied 18.5 % MAT on SEZ developers and units and DDT on developers on the grounds that they were leading to huge revenue loss to the exchequer without adding significantly to the exports.
Source- The Indian Express
Department of Industrial Policy and Promotion, DIPP, Finance ministry, Minimum Alternate Tax, Narendra Modi, SEZ developers, special economic zones
