The Government proposes to come out with guidelines soon to promote exports from special economic zones, said the Commerce Minister, Mr Anand Sharma.
He attributed the current slowdown in SEZ exports to levy of taxes such as the Minimum Alternate Tax and Dividend Distribution Tax.
“We have undertaken a comprehensive assessment of the SEZ scheme to revisit certain aspects of the policy and operational framework. After concluding the inter-ministerial consultation, we will be able to come out with new guidelines to make the operation of the SEZ policy more buoyant,” Mr Sharma said.
The SEZs have been instrumental in providing robust infrastructure for export promotion. The SEZs provide direct employment to over 8.45 lakh people. They contributed to exports of Rs 3.65 lakh crore last year. They have received investment of over Rs 2.02 lakh crore so far.
The Government also proposes to announce the revamped 100 per cent export- oriented unit scheme. “The 100 per cent EOU scheme has also been reviewed to assess its remodelling after withdrawal of the income-tax exemption under Section 10 (B) of the Income Tax Act. A committee was constituted for this purpose, which has now submitted its report. Over the next few months, we shall be making an announcement of the revamped 100 per cent EOU scheme,” Mr Sharma said.
Also, the Government might announce changes to the Deemed Exports Scheme, which provides benefit of exemption and remission of duty for supplies to specified projects, to domestic manufacturers. “This scheme is also undergoing comprehensive review and after concluding the inter-ministerial consultations, we shall be announcing the changes,” Mr Sharma said.