MAT, DDT on SEZs has dented the investor friendly image: EPCES delegation to Sitharaman
Updated: Jan 20, 2016 03:57:10pm
New Delhi, Jan 20 (KNN) Imposition of minimum alternate tax (MAT) and dividend distribution tax (DDT) on Special Economic Zones (SEZs) has dented the investor friendly image of SEZs and has created uncertainty in the minds of foreign & domestic investors, Export Promotion Council for EOUs and SEZs (EPCES) said.
MAT and DDT has adversely affected the growth, investments, employment and exports from SEZs in India and resulted in loss of valuable foreign exchange earning of the country, the delegation of EPCES led by P C Nambiar said this in a meeting with Commerce & Industries Minister Nirmala Sitharaman on Tuesday.
Nambiar requested that MAT should be totally withdrawn or at least reduced to its original rate of 7.5 per cent.
Sitharaman informed that due to imposition of MAT/DDT there has been slowdown in SEZ sector in terms of growth in SEZs. Ministry of Commerce & Industry is in the process of identifying the reasons for this slowdown in SEZ Sector, according to an official statement.
The Minister assured the members of the Delegation that Ministry of Commerce & Industry has already taken up this issue with Ministry of Finance.
As regards Proposal for abolition of all Direct Tax Benefits for SEZs not operationalized before April, 2017, Nambiar, informed that Central Board of Direct Taxes (CBDT) is considering this proposal.
In case, this proposal for abolition of all Direct Tax Benefits for SEZs not operationalized before April, 2017 is also implemented, this will further dent the investor friendly image of SEZs and weaken the SEZ Scheme further.
It was requested to extend the Sunset Clause on SEZs upto 2023. The Commerce Minister informed that the issue has already been taken up with Finance Minister to remove the Sunset Class on SEZs. Nasscom has also taken up this issue.
Sitharaman assured the delegation to look into the matter raised by them regarding Preferential Rates of FTAs to import from SEZs by DTA importer use of land in Non-Processing Area, and Dual use of land in Non-Processing Area.
The delegation comprised of senior representatives of Reliance Industries Jamnagar SEZ, Adani Port & SEZ, Tata Steel SEZ, DLF Ltd., Serum Institute of India Ltd, P.P. Jewellers, Phoenix Infocity, J. Matadee Free Trade Zone, ION Kharadi – Panchshil Group. (With PIB Inputs)
MAT and DDT has adversely affected the growth, investments, employment and exports from SEZs in India and resulted in loss of valuable foreign exchange earning of the country, the delegation of EPCES led by P C Nambiar said this in a meeting with Commerce & Industries Minister Nirmala Sitharaman on Tuesday.
Nambiar requested that MAT should be totally withdrawn or at least reduced to its original rate of 7.5 per cent.
Sitharaman informed that due to imposition of MAT/DDT there has been slowdown in SEZ sector in terms of growth in SEZs. Ministry of Commerce & Industry is in the process of identifying the reasons for this slowdown in SEZ Sector, according to an official statement.
The Minister assured the members of the Delegation that Ministry of Commerce & Industry has already taken up this issue with Ministry of Finance.
As regards Proposal for abolition of all Direct Tax Benefits for SEZs not operationalized before April, 2017, Nambiar, informed that Central Board of Direct Taxes (CBDT) is considering this proposal.
In case, this proposal for abolition of all Direct Tax Benefits for SEZs not operationalized before April, 2017 is also implemented, this will further dent the investor friendly image of SEZs and weaken the SEZ Scheme further.
It was requested to extend the Sunset Clause on SEZs upto 2023. The Commerce Minister informed that the issue has already been taken up with Finance Minister to remove the Sunset Class on SEZs. Nasscom has also taken up this issue.
Sitharaman assured the delegation to look into the matter raised by them regarding Preferential Rates of FTAs to import from SEZs by DTA importer use of land in Non-Processing Area, and Dual use of land in Non-Processing Area.
The delegation comprised of senior representatives of Reliance Industries Jamnagar SEZ, Adani Port & SEZ, Tata Steel SEZ, DLF Ltd., Serum Institute of India Ltd, P.P. Jewellers, Phoenix Infocity, J. Matadee Free Trade Zone, ION Kharadi – Panchshil Group. (With PIB Inputs)
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