Government should extend fiscal incentives and further improve ease of doing business to attract investors in the SEZ scheme, industry body Assocham today said.
"To arrest the exodus of investors from the SEZ scheme", the chamber "has advocated for single window clearance mechanism, ease of doing business and fiscal incentives both direct and indirect".
In a note submitted to the Commerce and Industry Minister, the chamber said there has been massive exodus from SEZs of late.
Until 2013, 580 SEZs were formally approved and out of this over 150 have been de-notified, it said.
If all the approved zones start exporting, it will help in boosting exports from SEZs, enhance development on industrial infrastructure and attract foreign investments, it added.
"This exodus from SEZs is mainly attributable to the factors like unstable policies relating to availability of fiscal benefits promised under the SEZ Act (particularly, policy relating to taxation)," it said.
Imposition of Minimum Alternate Tax (MAT) Dividend Distribution Tax (DDT) too has impacted investments in these zones, it said.
"Lack of clarity about implication of proposed Goods and Services Tax (GST) on SEZs and lack of coordination across departments at the Central and State government level" too is impacting these zones, it said.
The SEZs could also help in achieving the aims of Make in India initiative, it said.
At present, a total of 204 SEZs are exporting. As of June 30, a total of 15,04,597 persons have been provided employments in SEZs.
