Incentives/facilities to special economic zones
Updated: Jul 12, 2014 12:59:21pm
New Delhi, Jul 12 (KNN) The government is giving special incentives and facilities to special economic zones (SEZ) in order to attract investment. These include exemption from various taxes and duty free import or domestic procurement of goods for development and operation of units.
“The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs are: Duty free import/domestic procurement of goods for development, operation and maintenance of SEZs and SEZ units; 100 per cent Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50 per cent for next 5 years thereafter and 50 per cent of the ploughed back export profit for next 5 years,” Minister of State for Commerce and Industry, Nirmala Sitharaman said in Parliament yesterday.
Units in SEZs are also exempted from Central Sales Tax, Service Tax and State sales tax and other levies as extended by the respective State Governments, she said.
According to official data, while the total exports of the country amounted to Rs 16,35,261 crore in 2012-13, total SEZ exports were pegged at Rs 4,76,159 crore (29.12 per cent), providing employment to 10,74,904 individuals.
In addition to Seven Central Government Special Economic Zones (SEZs) and 11 State/Private Sector SEZs set-up prior to the enactment of the SEZ Act, 2005, formal approval has been accorded to 565 proposals out of which 388 SEZs have been notified.
Presently, a total of 185 SEZs are exporting.
The fiscal concessions and duty benefits allowed to Special Economic Zones (SEZs) are inbuilt into the SEZs Act, 2005 and Rules thereunder. These exemptions are uniformly applicable to all SEZs and are in the nature of incentives for export and are consistent with the principles that guide export promotion initiatives of the Government in general.
The Government, on the basis of inputs/suggestions received from stakeholders on the policy and operational framework of the SEZ Scheme, periodically reviews the policy and operational framework of SEZs and takes necessary measures so as to facilitate speedy and effective implementation of SEZ Scheme. (KNN/ES)
“The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs are: Duty free import/domestic procurement of goods for development, operation and maintenance of SEZs and SEZ units; 100 per cent Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50 per cent for next 5 years thereafter and 50 per cent of the ploughed back export profit for next 5 years,” Minister of State for Commerce and Industry, Nirmala Sitharaman said in Parliament yesterday.
Units in SEZs are also exempted from Central Sales Tax, Service Tax and State sales tax and other levies as extended by the respective State Governments, she said.
According to official data, while the total exports of the country amounted to Rs 16,35,261 crore in 2012-13, total SEZ exports were pegged at Rs 4,76,159 crore (29.12 per cent), providing employment to 10,74,904 individuals.
In addition to Seven Central Government Special Economic Zones (SEZs) and 11 State/Private Sector SEZs set-up prior to the enactment of the SEZ Act, 2005, formal approval has been accorded to 565 proposals out of which 388 SEZs have been notified.
Presently, a total of 185 SEZs are exporting.
The fiscal concessions and duty benefits allowed to Special Economic Zones (SEZs) are inbuilt into the SEZs Act, 2005 and Rules thereunder. These exemptions are uniformly applicable to all SEZs and are in the nature of incentives for export and are consistent with the principles that guide export promotion initiatives of the Government in general.
The Government, on the basis of inputs/suggestions received from stakeholders on the policy and operational framework of the SEZ Scheme, periodically reviews the policy and operational framework of SEZs and takes necessary measures so as to facilitate speedy and effective implementation of SEZ Scheme. (KNN/ES)
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