Budget 2013 has not provided any relief to SEZs: EPCES

NEW DELHI: Export Promotion Council for EOUs and SEZs (EPCES) today said the Budget has not provided any relief to special economic zones, which contributes about 30 per cent in the country's overall exports.

EPCES had demanded for withdrawal of Minimum Alternate Tax (MAT) and Dividend Distribution Tax ( DDT) on special economic zones (SEZs) since this sector has made huge investments and provide substantial employment in the country.

"Budget 2013-14 has not provided any relief to EOUs/SEZ community," EPCES Chairman P C Nambiar said in a statement.

He said that MAT rate could have been reduced to its introductory rate of 7.5 per cent.

He also expressed his dissatisfaction over increase in surcharge from 5 to 10 per cent on Dividend Distribution Tax.

He said that SEZ Act was enacted for the purpose of providing long-term stability and altering the provisions of the Act in such a short span of time is "sending a very wrong signal to the foreign and domestic investors".

The government had imposed MAT and DDT on SEZs in 2010-11, which were earlier exempted from almost all levies.

Exports from the tax-free enclaves grew by 36 per cent year-on-year to Rs 2.39 lakh crore during April-September period of this fiscal.

In 2011-12, these zones have contributed 31 per cent in the overall exports of USD 307 billion.

As on December 31, 2012, a total of 166 zones are operational in the country.