DIRECT TAXES
| Govt to take up requests for new SEZs on Oct 21 Mon, 20 Sep 2010 15:54:40 GMT |
| The Economic Times Govt to take up requests for new SEZs on Oct 21 NEW DELHI: The Centre will consider fresh requests for setting up special economic zones, which have emerged as a major source of exports, on October 21 here. "The Board of Approval (BoA) will consider proposals for setting up new SEZ and other related issues on October 21," a senior Commerce Ministry official said. The agenda for the meeting was being finalised, he added. The 42nd BoA meeting chaired by Commerce Secretary Rahul Khullar earlier this month had approved setting up of 11 new special economic zones (SEZs). While SEZs have attracted investments worth over Rs 1.66 lakh crore and created over 5.5 lakh jobs, Export Promotion Council for EoUs and SEZs (EPCES) has said that by altering the SEZ Act through the DTC bill, the government is sending a wrong message to investors. It said the provisions "would very seriously affect employment, exports and investment in the SEZs". The SEZ Act 2005 provides host of tax benefits to both SEZ developers and unit therein. The DTC bill, which was tabled in Parliament last month, proposed that the SEZs notified on or before March 31, 2012, will get income tax benefits. And units in SEZs that commence commercial operations by March 2014 shall be allowed tax sops under the Income Tax Act 1961. The government aims to introduce DTC, which will overhaul the country's income tax act, from next April. Exports from the zones in the first quarter of 2010-11 were estimated at Rs 58,685 crore, up 68 per cent over the year ago period. The shipments in 2009-10 totalled Rs 2.2 lakh crore. So far 577 formal approvals have been granted for setting up of SEZs of which 363 have been notified. |
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