Tax sops to SEZs in FY10 seen at Rs 8.4 cr, up 25%

Tax sops, including customs duty exemptions, provided to special economic zones (SEZ) are projected to have increased by about 25 per cent to Rs 8,470 crore in 2009-10, Parliament was informed today.

The incentives, in the form of direct tax deductions and customs duty exemptions, amounted to Rs 6,783 crore in 2008-09.

The "projected revenue foregone" during 2009-10 on account of various direct tax deductions given to SEZ developers and units is Rs 5,266 crore, Minister of State for Finance S S Palanimanickam informed the Lok Sabha in a written reply.

The revenue foregone on account of direct tax deductions in 2008-09 stood at Rs 4,459 crore.

The minister said the revenue foregone on account of customs duty exemptions for SEZs in 2009-10 is estimated at Rs 3,204 crore, while it was Rs 2,324 crore (provisional) in the previous fiscal.

As per the latest figures, physical exports from the SEZs account for 84 per cent of their total turnover.

A total of 576 SEZs have been approved by the government, of which 114 are operational.