“The work undertaken by OECD suggests that such schemes generate very little new investment and there are considerable advantages in ending such incentives,” OECD Deputy Secretary General Pier Carlo Padoan said.
Tax revenues
He said the government should review the tax concessions given to special economic zones, export proces tendency to distort the economy and do not result in sustainable tax revenues.
Our experience across different nations showed that such tax exemptions were helpful only at the initial stage of development, and considering India is already a mature economy, they are unlikely to achieve its objectives here, Pier Carlo Padoan added.
