Spe­cial Eco­nomic Zones to ex­port 51% of goods

This pro­posal was first put up in Au­gust 2012 by the MM Joshi Com­mit­tee.

Cargo Talk - - Cargo News -

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.