New guidelines soon to revive SEZs
15 Aug 2012 8:11 AM IST
The government will soon come out with new norms to revive Special Economic Zones (SEZs), which have lost sheen after the imposition of certain levies and the proposal to take away tax incentives.
Commerce secretary S R Rao said his ministry has held a series of meetings with the Revenue department officials on the matter. ‘We are on the verge of getting a closure on the issues. I think in maximum 4-5 weeks, you should be seeing the new rules kicking in,’ he said.
The government had imposed Minimum Alternative Tax (MAT) and Dividend Distribution Tax (DDT) on SEZs in 2010-11, which were earlier exempted from almost all levies.
Due to imposition of these levies, there has been a visible slowdown in growth of export from SEZs.
The initial phase of SEZ scheme, launched in 2006, saw developers lining up in big numbers for projects.
To boost investor confidence in the zones, the government is planning incentives for developers who want to set up SEZs in remote and undeveloped areas.
Commerce secretary S R Rao said his ministry has held a series of meetings with the Revenue department officials on the matter. ‘We are on the verge of getting a closure on the issues. I think in maximum 4-5 weeks, you should be seeing the new rules kicking in,’ he said.
The government had imposed Minimum Alternative Tax (MAT) and Dividend Distribution Tax (DDT) on SEZs in 2010-11, which were earlier exempted from almost all levies.
Due to imposition of these levies, there has been a visible slowdown in growth of export from SEZs.
The initial phase of SEZ scheme, launched in 2006, saw developers lining up in big numbers for projects.
To boost investor confidence in the zones, the government is planning incentives for developers who want to set up SEZs in remote and undeveloped areas.
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