SEZ Sops now in Rajya Sabha
The SEZ sops controversy has now reached the Rajya Sabha at last. The commerce minister Kamal Nath has said that the projected revenue loss from the incentives was only imaginary and these SEZ will be one of the major income to the Government and will definitely act as a booster to the Economy of the Country. He clarified that “According to a study by National Institute of Public Finance and Policy the loss of tax revenue on account of SEZs on the indirect tax front would be Rs 90,000 crore and direct taxes Rs 70,000 crore”.
He also discussed that there are around 28 operational SEZ’s across the country which have accounted for exports worth Rs 22,000 crore last year besides creating direct employment for over one lakh people and the SEZs operational at present had 927 manufacturing units and an investment of Rs 2000 crore had flowed into them in last two months. Nath, however, said, “Taxes cannot be exported to remain competitive. The government offers tax concessions to exporters otherwise also. The incentives for units in SEZs cannot be less than what is being offered outside.”
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Investment in India » SEZ: Is it Export promotion or Real Estate Promotion: says RBI wrote:
[…] Our review: If RBI is now in picture, then it’s a matter of concern. This will definitely ignite the political dispute for SEZ into the states also. The promoters who have already set up their plants in the existing operational SEZ must be the most happiest persons coz they would be affected by any the policy change into the SEZ act, since their units were set up in the SEZ which the old policy was in action. […]
Posted on 31-Aug-06 at 11:40 pm | Permalink