The representatives of the Centre and states governments will meet on September 10 to address issues relating to special economic zones (SEZs), including ineffective functioning of the single-window clearance mechanism. Concerns over states not granting tax exemptions in non-processing areas will also be taken up. Meanwhile, a group of ministers would meet on Thursday to finalise a rehabilitation policy for those affected due to land acquisition for industrial projects.
Several states, except Gujarat, Maharashtra and Andhra Pradesh, are yet to pass respective SEZ legislation for smoother implementation of the Union government?s policy.
This is going to be the first Centre-states meeting to thoroughly discuss issues relating to SEZs. Interestingly, Bihar, which has chosen to remain SEZ-free so far, has not been invited.
In May, an empowered committee of state finance ministers had opposed giving tax exemptions in non-processing area, which is not directly related to industrial and export activities. The commerce ministry, however, pitched for exemption from value added tax and other state-level taxes, levied on goods sold from domestic tariff area to both processing and non-processing areas. Another issue likely to be discussed is stamp duty imposed by some states on SEZ developers, despite exemption provided under the SEZ Act and the Stamp Act.
The commerce ministry also wants states to ensure that SEZ developers with in-principle approvals are exempted from paying stamp duty for initial land acquisition and subsequent activities.
During the meeting, the commerce ministry is also likely to take up the issue of the 268 pending proposals, of which around 170 cases have not yet got clearance from various state governments.
The Centre had earlier set an August 23 deadline for states to take a final call on 170 pending SEZ applications. The states had also indicated that the proposals could be scrapped if they fail to recommend the proposals to the Board of Approval by August 23.
As per SEZ Rules, the developers have to obtain clearance from the respective states before forwarding it to the Centre. But many of them apply directly to the Centre to expedite the process. Other issues affecting implementation of SEZ rules and regulations, shortage of customs officers and lack of clarity regarding authorised operations will also be taken up in the meeting.
