Commerce ministry to take up differential MAT on SEZs

Economics | :

Context: Budget proposed a differential tax rate for the International Financial Services Centre (IFSC), Gujarat
Govt. proposed a reduced MAT rate of 9% for the IFSC in an SEZ in Gujarat, while retaining 18.5% MAT on all other SEZ developers and units
News: The Commerce Ministry will raise with its concern finance ministry after taking inputs from SEZ sector
Reason: The export-oriented SEZ sector is witnessing a slowdown in terms of investment, exports and employment generation since FY12
Criticism: In the FY12, govt. imposed a 18.5% MAT on SEZ developers and units as well as Dividend Distribution Tax on developers