PHD CHAMBER SEEKS RESTORATION OF MAT & DDT EXEMPTIONS FOR SEZs

PHD CHAMBER SEEKS RESTORATION OF MAT & DDT EXEMPTIONS FOR SEZs

PHD CHAMBER SEEKS RESTORATION OF MAT & DDT EXEMPTIONS FOR SEZs

 

No.PR-192
February 5, 2015
New Delhi
 

PHD CHAMBER SEEKS RESTORATION OF MAT & DDT EXEMPTIONS FOR SEZs
 

PHD Chamber of Commerce and Industry has urged the finance minister to restore exemptions of Minimum Alternate Tax (MAT) and dividend Distribution Tax (DDT) for the SEZs in the budget proposals for 2015-16 since in their absence SEZs have lost relevance.
 

In a report brought out on SEZz in India by the Chamber which was released here on Thursday in the presence of senior functionaries of DGFT and industry experts, it is felt by the SEZs operators that operating from within the Domestic Tariff Area (DTA) has become much more beneficial then functioning within SEZs after the MAT and DDT exemption have been withdrawn since no significant export benefits exist in them.
 

The Chamber has pointed out that on SEZs, employment, investment and exports registered a growth of 4692%, 1679% and 1276% respectively between 2006 and 2012.  However, with the withdrawal of DDT and MAT exemptions, SEZs performance started decelerating.
 

In its estimates, 17 SEZ contribute to 14.16% of employment, 40.49% of investments and 51.10% of exports in the country and at the same time the macro indicators show no variation in the trend growth for the last 7-8 years.
 

Therefore, it is essential to restore the suggested exemption so that the SEZs regain the lost momentum and set out their new journey on the right track, said President, PHD Chamber Mr. Alok B. Shriram.
 

ENDS

Koteshwar Prasad Dobhal
Consultant (PR)