Tax exemptions to SEZs: Kamal Nath

Itanagar, Nov 30 (UNI) Union Commerce&Industry minister Kamal Nath said the tax exemptions granted to the special economic zones (SEZs) include central sales and service tax.

In reply to a query raised by Arunachal MP Kiren Rijiju in the parliament on Tuesday, Mr Nath said the tax exemptions to SEZ developers also include customs or excise duties for development of SEZs, income tax on expert income for a block of ten years in 15 years and minimum alternate tax.

The minister further said the duty free import, domestic procurement of goods for development, operation and maintenance of SEZ units under IT Act for first five years, 50 per cent for next five years and 50 per cent of the ploughed back export profit for next five years.

The tax exemption had also been granted on external commercial borrowing by SEZ units up to 500 million US dollars in a year without any maturity restriction through recognised banks besides exemption from central sales and service tax.

UNI UPB PP AB 1314