EPCES asks the Govt to remove minimum alternate tax

The Dollar Business Bureau

The Export Promotion Council for EOUs and SEZs (EPCES) asked the Government to remove minimum alternate tax (MAT) and continue tax incentives that have been enjoyed by the units in these zones.

“The Government should reconsider the restoration of the original Special Economic Zone (SEZ) Act as it can help the sector and generate employment,” said Vinay Sharma, Officiating Chairman, EPCES.

The Government should reconsider the industry’s demand for restoring tax benefits in order to support the sector’s growth and creating jobs as the Union Budget 2018-19 did not bring any concrete measure, EPCES said in a statement.

“The budget has absolutely nothing important for the SEZs despite flagging the key issues affecting the sector,” it said.

Commenting on the Budget, Sharma expressed dismay at lack of any concrete measures to drive EOUs/SEZ-led growth in the country and said the Budget fails to enthuse the EOUs and SEZs this time around.

“It’s really surprising that despite flagging the key issues affecting the beleaguered sector to the concerned ministry (in our pre-budget memorandum), the Budget fails to suitably address sectoral issues such as those relating to MAT, DDT and the Sunset Clause,” he said.

“Thus, I urge the Government to reconsider the restoration of the original SEZ Act, since that in my view can help the sector immensely in regaining the glory it once enjoyed,” he added.

Sharma further said that the exports from these zones witnessed a growth of 21% in December.

The units in SEZs enjoy 100% exemption from income tax on export revenue for initial five years, 50% exemption for another five years, and 50% exemption of the ploughed back profit on exports for further five years.

Emerged as key export hubs in the country, SEZs started losing their sheen MAT was imposed of and sunset clause was introduced.