SEZ Development Commissioner allays fears of investors

Mangalore, Sep 9 (UNI) Special Economic Zone, Kochi, Development Commissioner C J Mathew today allayed the fears of investors and assured them that they would not face any revenue loss in investing in SEZs.

Speaking at the one-day interactive meeting ''Samvada'' on ''Entreprenurial opportunities provided by Mangalore SEZ,'' he said there could be some percentage of loss in the indirect taxes.

However, this could be considered as subsidy not as loss as there was incentive subsidy by the government for those investing in the SEZs, while there was no loss in the direct tax.

Highlighting the advantages of SEZs, he said it was a designated duty free enclave and would be treated as a foreign territory for trade operations, duties and tariffs. No import licence was required and customs duty would be exempted on import of capital goods, raw materials, consumables and spares and Central excise duty on procurement of capital goods, raw materials and consumable spares from domestic market.

He said Central Sales Tax paid on domestic purchases would be reimbursed and 100 per cent income tax exemption for a block of five years, 50 per cent for two years and upto 50 per cent of the profits ploughed back for next three years.

Mr Mathew said that though the government had approved 150 SEZs, only a few of them have become operational after issuance of notification. ''Big industries and small and medium entrepreneurs should grab the opprotunities thrown open to them with the creation of Mangalore SEZ,'' he added.

The meeting was organised by ''Omega'' a voluntary organisation of student commumity of T A Pai Management Institute, Manipal and Centre for Small Business Management, Manipal.

UNI MA RM-RG GM1705