As SME sector is the backbone for the industry and employs 59 million people, it can be a growth driver for future. And hence a special package for the SME sector will
help sustainable growth, Reddy said.
The tax on SEZ was introduced in the Union Budget 2011-12. The SEZ players said the benefits offered in the SEZ Act 2005, provided a wide range of incentives to investors in SEZs including exemption from MAT and 100 per cent income
tax exemption on export income.
According to a recent survey by research firm Ipsos, companies attributed exemption from tax as the key reason for investment in SEZs, which stood nullified with the imposition of the MAT.