Commerce Ministry hopes for SEZ tax benefits in Budget

It has suggested the removal of minimum alternate tax (MAT) on these zones in the Budget

The commerce ministry is hopeful that its finance counterpart will look at the submissions made by it positively regarding tax benefits for special economic zones (SEZs), a top official today said.

"We hope... We have made our submissions," Commerce Secretary Rita Teaotia told reporters when asked whether the ministry has taken up tax issues concerning SEZs with Finance Minister Arun Jaitley.

The finance minister will unveil the Budget for 2016-17 on February 29, which is widely expected to contain measures to boost economy as well as exports.

The commerce ministry has suggested the removal of minimum alternate tax (MAT) on these zones in the Budget.

The Export Promotion Council for export oriented units (EOUs) and SEZs (EPCES) too has said that the government should not withdraw any tax incentives from SEZs as it might hit exports and job creation.

During the April-September period of the current finacial year, exports from these zones stood at Rs 2.21 lakh crore as against Rs 4.63 lakh crore in 2014-15.

Overall merchandise exports from India have been declining since December 2014.