Special Economic Zones to export 51% of goods
This proposal was first put up in August 2012 by the MM Joshi Committee.
The Union Government plans to ask special economic zones ( SEZs) to export at least 51 per cent of goods and services produced by them.
Currently, the SEZs only need to be positive net foreign exchange ( NFE) earners over a period of five years from the commencement of operations.
The proposal was first put up in August 2012 by the Public Accounts Committee (PAC) headed by Murli Manohar Joshi. The panel had demanded that, since SEZ units enjoy tax benefits and fuel the economic growth, the misuse of the SEZ scheme must be prevented by revisiting the policy and plugging the loopholes in implementation.
The PAC said that, in the SEZ Act, there was no requirement of undertaking exports, and it cuts down the primary objective of the Act, which came into force from February 2006 to promote exports and thereby boost foreign exchange earnings.
In the Union Budget of 201213, the government had levied minimum alternate tax (MAT) and dividend distribution tax (DDT) on products from these tax-free enclaves.