As per the Export Promotion Council for EOUs and SEZs (EPCES), out of 389 SEZs notified, 170 are operational and these exports are helping in the reducing the widening current account deficit (CAD).
During 2012-13, SEZs have attracted a total of R2.36 lakh crore investment and provided direct employment opportunities to over 11 lakh people.
Inconsistent tax policy, especially with the introduction of minimum alternate tax (MAT) and dividend distribution tax (DDT), has discouraged investors. If the income tax benefit is not given to SEZ developers and units, growth of the sector will remain a dream not fulfilled, said a statement from the council.
Indirect tax benefit offered to SEZ units are in the line of what have been offered to DTA exporters and EOUs.
The council also urged the finance ministry to revisit the tax provisions related to SEZs on the back of declining GDP growth and escalating CAD.