New Delhi [India], Apr. 18 (NewsVoir): PHD Chamber of Commerce and Industry on Wednesday urged the government to remove Minimum Alternate Tax (MAT) on SEZz for their further expansion and diversification as the issue of MAT on these temples of modern Indian economy has hindered their growth in general and exports in particular.
PHD Chamber President Anil Khaitan while speaking at an interactive session on
EOUs, SEZs Units and
SEZ Developers held under its aegis here today, also lamented that India has failed to alleviate its SEZs on lines with those that prevail in China, Singapore including Saudi Arab among others, resulting their exports not to grow on expected volumes ever since SEZs were created.
“Ease of Doing Business in SEZs still remains an issue of serious concern despite duty concessions accorded on them by Centre in particular and States with their Model SEZ Act in general and, therefore, the persisting bureaucratic hurdles in terms of regulations required to be removed although exports from SEZs have touched to an extent of Rs.537 lakh crore by 2017-18,” said Khaitan.
“Another reason for SEZs not performing as per aspirations of business units functioning in such enclosures is on account of missing social infrastructure such as facilities like housing, entertainment, education and the like and, therefore, whenever new SEZs are created such an infrastructure ought to be built for the displaced and well being of such units,” he added.
According to him, the issue of MAT needs to be re-examined by the authorities concerned so that SEZs are not subjected to such taxation as hinders and restrict their growth and constrict their expansion. Only with forward looking policies in terms of regulations of SEZs can lead to their transformation, he said.
The Session was presided over by the Development Commissioner, Noida SEZ, Dr. L B Singhal who in his remarks pointed out that the new focus on SEZs is going to be multi-products as well as multi-sectorals so that optimum advantages could be obtained on the operational front in terms of availability of limited land.
“Modifications in SEZs would continue to happen with larger private sector players coming into the development of SEZs,” he pointed out.
Among others who were also present on the occasion comprised Regional Chairman, EPCES Noida, Bhuvnesh Seth; Director, Artha Infratech Pvt. Ltd., Shagun Gupta including Chief Economist of the Chamber, Dr. S P Sharma.
Souce: india.com