| Date: |
29-04-2015 |
| Subject: |
Parliamentary Panel for restoration of tax benefits for SEZ |
NEW DELHI: A parliamentary standing committee called for the restoration of tax benefits for special economic zones (SEZs) to help revive the programme.
The committee led by Bharatiya Janata Party lawmaker Chandan Mitra asked the department of commerce to take up the issue of minimum alternate tax (MAT) and dividend distribution tax (DDT) levied on SEZs with the finance ministry.
"The committee is surprised to note that the ministry of finance took the decision of withdrawing exemption of MAT and DDT for SEZs... unilaterally. The committee recommends the department to take up this matter afresh with the minister of finance and sensitize it about the importance of SEZs in the wellbeing of our economy," the committee said in its report.
Then finance minister Pranab Mukherjee had in 2011-12 imposed MAT of 18.5% on the book profits of SEZ developers and the units located inside.
DDT was levied at 10%. The twin taxes rendered the SEZs, envisaged as enclaves of export excellence, unattractive.
The committee also criticised the department over misuse of SEZ land by real estate companies and therefore suggested an audit be conducted by the Comptroller and Auditor General ( CAG). Out of 45,635.63 hectares notified for the development of SEZs, actual operations took place only on 28,488.49 hectares or 62% of the notified land. Exports from SEZs fell 7.6% in 2014-15.
Source : economictimes.indiatimes.com
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