PHD Chamber of Commerce and Industry has urged the government to remove
Minimum Alternate Tax (MAT) on SEZz for their further expansion and
diversification as the issue of MAT on these temples of modern Indian economy
has hindered their growth in general and exports in particular.
President, PHD Chamber, Mr. Anil Khaitan while speaking at an
Interactive Session on EOUs, SEZs Units and SEZ Developers held under its aegis
here on April 18, 2018, also lamented that India has failed to alleviate its
SEZs on lines with those that prevail in China, Singapore including Saudi Arab
among others, resulting their exports not to grow on expected volumes ever
since SEZs were created, says a release.
‘Ease of Doing Business’ in SEZs still remains an issue of serious
concern despite duty concessions accorded on them by Centre in particular and
States with their Model SEZ Act in general and, therefore, the persisting
bureaucratic hurdles in terms of regulations required to be removed although
exports from SEZs have touched to an extent of Rs.537 lakh crore by 2017-18,
said Mr. Khaitan.
Another reason for SEZs not performing as per aspirations of business
units functioning in such enclosures is on account of missing social
infrastructure such as facilities like housing, entertainment, education and
the like and, therefore, whenever new SEZs are created such an infrastructure
ought to be built for the displaced and well being of such units, pointed out
According to him, the issue of MAT needs to be re-examined by the
authorities concerned so that SEZs are not subjected to such a taxation as
hinders and restrict their growth and constrict their expansion. Only
with forward looking policies in terms of regulations of SEZs can lead to their
transformation, concluded the President, PHD Chamber.
The Session was presided over by the Development Commissioner, Noida
SEZ, Dr. L B Singhal who in his remarks pointed out that the new focus on SEZs
is going to be multi-products as well as multi-sectorals so that optimum
advantages could be obtained on the operational front in terms of availability
of limited land. Modifications in SEZs would continue to happen with larger
private sector players coming into the development of SEZs, he pointed out.
Among others who were also present on the occasion comprised Regional
Chairman, EPCES Noida, Mr. Bhuvnesh Seth; Director, Artha Infratech Pvt. Ltd.,
Mr. Shagun Gupta including Chief Economist of the Chamber, Dr. S P Sharma