PHD Chamber of Commerce and Industry today urged the government to remove the Minimum Alternate Tax (MAT) on special economic zones to boost their expansion and diversification.
The chamber argued that imposition of MAT on special economic zones (SEZs) has hindered their growth and especially the performance of exports.
PHD Chamber President Anil Khaitan, while addressing a conference here, lamented that India has failed to elevate its SEZs on the lines of ones in China, Singapore and Saudi Arabia, among others. This, he reasoned, was behind the exports from SEZs not achieving desired growth.
'Ease of Doing Business' in SEZs still remains an issue of serious concern despite duty concessions accorded on them by the Centre in particular and states with their Model SEZ Act, he said.
The persisting bureaucratic hurdles in terms of regulations required to be removed although exports from SEZs have touched...Rs 537 lakh crore by 2017-18, said Khaitan.
MAT is levied at the rate of 18.5 per cent plus surcharge and cess as applicable on book profit.
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