Rajasthan govt urges Centre to pull back MAT on SEZ

Industry Minister Gajendra Singh said the taxes announced in 2012 Union Budget resulted in decline in investment

Rajasthan government has requested the Centre to withdraw minimum alternate tax and dividend distribution tax levied on Special Economic Zone (SEZ), to attract investors.

Replying to a question related with Jaipur's Mahindra World City SEZ during the Question Hour, Industry Minister Gajendra Singh said the taxes announced in 2012 Union Budget were levied by the central government which resulted in decline in investment.

He said several private SEZ developments withdrew from setting up SEZ and many of them got their projects denotified.

Therefore, he said, the state government has requested the centre to withdraw these taxes.

The minister said Mahindra Lifespace Developers Ltd, which signed an MoU with Rajasthan State Industrial Development and Investment Corporation to set up the SEZ in July 2005 has developed facilities like food court, gym and entertainment area. Post office and a police station has also been set up.

The company has not committed any violation in process of setting up the SEZ and the project is in the phase of development.

Later in the day, speaking on demand for grants for public works department, Congress MLA Sukhram said that the ruling party's MLA Ghanshyam Tiwari tabled his speech on budget because he has no freedom to speak.

This created uproar and government chief whip Kalulal Gurjar said that Tiwari had himself got his speech tabled because he wanted to provide opportunity to others members to speak.