SEZ sops may be restored, says DIPP

“The issue of minimum alternate tax (MAT) and dividend distribution tax (DDT) has been taken up with the finance ministry. In the next 3-4 months, SEZ policy will be finalised and some of the benefits will be restored,” Amitabh Kant, secretary, department of industrial policy and promotion (DIPP), said.

The secretary, who was speaking at the curtain-raiser of Vibrant Gujarat summit to be held next year, said that the government would bring in consistency in SEZ policy to revive them.

Earlier, Prime Minister Narendra Modi had said that a high-level team has been set up to review and resolve the problems faced by SEZs.

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The UPA-II had levied 18.5 per cent MAT on SEZ developers and units and DDT on developers on the grounds that they were leading to huge revenue loss to the exchequer without adding significantly to the exports.

Following the levy of the taxes, the commerce department had argued that the gains from SEZs to the economy in terms of infrastructure creation, employment generation and exports, outweighed the revenue foregone.