Press Information Bureau

Government of India

Ministry of Commerce & Industry

12-December, 2012 17:34 IST

The SEZs located in the country including the State of Andhra Pradesh have seen a sharp slowdown due to a number of reasons including withdrawal of exemption from MAT and Dividend Distribution Tax (DDT) provisions, uncertain fiscal regime for SEZs, global slowdown in exports etc. The Government, on the basis of inputs/suggestions received from stakeholders on the policy and operational framework of the SEZ Scheme, periodically reviews the policy and operational framework of SEZs and takes necessary measures so as to facilitate speedy and effective implementation of SEZs.

This information was given by the Minister of State for Commerce & Industry Dr. D. Purandeswari in written reply to a question in Rajya Sabha today.

 

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Withdrawal of tax exemptions for SEZs undermines investor confidence; government reviews policy to restore stability and implementation. Withdrawal of exemptions from Minimum Alternate Tax and Dividend Distribution Tax, together with an uncertain fiscal regime and global export slowdown, reduced investor interest in SEZs. The government periodically reviews the SEZ policy and operational framework based on stakeholder inputs and takes measures to facilitate speedy and effective implementation and restore investor confidence.