No Tax Holiday for New Units in SEZs

A Delegation of Export Promotion Council for EOUs and SEZs (EPCES) led by Shri P.C. Nambiar, Chairman, EPCES had met Nirmala Sitharaman on January 19, 2016 for resolving the issues of EOUs and SEZs.

Nirmala 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. The Minister assured the members of the Delegation that Ministry of Commerce & Industry has already taken up this issue with Ministry of Finance.

It protested tha proposal for abolition of all Direct Tax Benefits for SEZs not operationalized before April, 2017 is implemented, the investor friendly image of SEZs will be dented. It also requested to extend the Sunset Clause on SEZs upto 2023. Nasscom has also taken up this issue.

Commerce Minister Nirmala Sitharaman also assured the delegation that the issue of Preferential Rates of FTAs for import from SEZs into DTA, use of land in Non-Processing Area, and Dual use of land in Non-Processing Area will also be taken up.