DIRECT TAXES
| Investor concerned over SEZ incentives removal in Budget Fri, 04 Mar 2011 14:21:00 +0530 |
| The President and CEO of a major special economic zone investor in India today expressed concern about the removal of some development-related incentives for SEZs in the 2011-12 Budget presented by Finance Minister Pranab Mukherjee. "We are concerned about the removal of SEZ incentives under the Budget," said Chong Siak Ching, the President and CEO of Ascendas, which has set up SEZs in Indian cities like Bangalore and Chennai. The mid-way removal of the incentives could lead to re-evaluation of the projects, she told reporters after addressing the US-Asia Pacific Regional Business Summit in Singapore. However, Chong stressed that her officials were giving feedback on the Budget and its impact on investments in SEZs to India's Commerce and Industry Ministry, Finance Ministry and the Revenue Department. The incentives in questions also include utility taxes, she added, pointing out that this could also affect IT companies that are tenants in the SEZs. India should also be cautious about losing its competitive edge in attracting investors as more regional countries were becoming an attractive place for investment for foreign investors, said Chong. However, she underlined Ascendas' commitment to India, saying the company would continue with its projects in the country. "We believe in (the) India growth story," she said, referring to the impressive economic growth and ongoing development projects in the country. Addressing the summit's luncheon panel session, Chong stressed on the importance of China and India as the two largest markets of her company and major Asian investment destinations. Ascendas is Singapore's leading investor in Indian business parks in Bangalore, Coimbatore, Chennai, Gurgaon, Hyderabad and Pune. |
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