SEZ to get back tax benefit
Ahead of prime minister Narendra Modi’s scheduled laying of foundation for the Rs 4,000 crore Jawaharlal Nehru Port Trust SEZ this weekend, commerce ministry pitched for restoration of tax benefits, which are widely expected to be announced in foreign trade policy this month-end.
Making her intent clear, commerce and industry minister Nirmala Sitharaman told the Rajya Sabha on Wednesday that her ministry has recommended restoration of original exemption of special economic zones (SEZs) from minimum alternate tax (MAT) and dividend distribution tax, the two major irritants that drastically slowed down setting up of new SEZs in the country. Presently, 18.5 percent MAT is levied on SEZs.
They grew quite rapidly in India in 2005-10, with 185 becoming operational. As many as 566 SEZs have been formally approved but many have withdrawn, some have been put in cold storage, partly due to global slowdown and partly due to phased withdrawal of tax incentives.
The SEZs have been given a lot of importance in this budget but that has been implemented only till the first phase a few more works has yet been left to done after which the SEZs will be ready completely.
Source: The Mint
Commerce and Industry Minister, Commerce Ministry, Dividend Distribution Tax, Jawaharlal Nehru Port Trust SEZ, Nirmala Sitharaman, special economic zones
