NEW DELHI: The exports from special economic zones (SEZs) increased by 15 per cent year-on-year to Rs 3.6 lakh crore during the previous fiscal (2011-12), according to the latest data revealed by the Export Promotion Council for EOUs and SEZs (EPCES).
Jatin R Mehta, EPCES Chairman, said, “The imposition of Minimum Alternate Tax (MAT) on the book profits of SEZ developers and units has discouraged investments.”
As on March 31, 2012, total investments in SEZs were about Rs 2.01 lakh crore and the sector has provided employment to 8.4 lakh people.
In addition, the council said that the introduction of the Direct Tax Code (DTC) from April 1, 2013 has raised the concerns of many SEZ developers over the deadline for profit-linked deductions.
Under DTC, which will replace existing Indian Income Tax Act 1961, tax rates would be trimmed to bring more people and companies under the tax net, phase out profit-linked exemptions for companies and replace them with investment-linked incentives.
The leading exports from the SEZs are IT, IT-hardware, petroleum, engineering, leather and garments.