<p>Exports from special economic zones (SEZs) grew by 15 per cent year-on-year to Rs 3.6 lakh crore in 2011-12, according to the data by the Export Promotion Council for EOUs and SEZs (EPCES).<br /><br /></p>.<p>During 2010-11, exports from tax-free enclaves stood at Rs 3.1 lakh crore.<br /><br />"The imposition of Minimum Alternate Tax (MAT) on the book profits of SEZ developers and units has discouraged investments," EPCES Chairman Jatin R Mehta said in a statement today.<br /><br />As on March 31, this year, total investments in SEZs were about Rs 2.01 lakh crore and the sector has provided employment to 8.4 lakh people, he said.<br /><br />Besides, the council said major SEZ developers are concerned over the deadline for profit-linked deductions with introduction of the Direct Tax Code (DTC) from April 1, 2013.<br /><br />The code, which will replace existing Indian Income Tax Act 1961, intends to cut tax rates to bring more people and companies under the tax net, phase out profit-linked exemptions for companies and replace them with investment-linked incentives.<br /><br />"We request the Department of Revenue that DTC may not be implemented till 2015 in respect of SEZs as it will help in increasing exports and investments," Mehta said.<br /><br />Under the SEZ Act, SEZ units get 100 per cent tax exemption on profits earned in the first five years of operation, a 50 per cent exemption for the next five years and another 50 per cent exemption on re-invested profits in the following five years.<br /><br />SEZ developers, on the other hand, get 100 per cent tax exemption on profits for 10 years, which they can choose to invoke within the first 15 years of operation.<br /><br />The council said of the 589 formally approved SEZs, 389 SEZs have been notified and 153 SEZs were in operation as on 31st March, 2012.<br /><br />IT, IT-hardware, petroleum, engineering, leather and garments are the leading exports from the SEZs.<br /><br />In the wake of uncertainties over tax sops, scores of SEZ developers were given more time to execute their project and some of them have surrendered.</p>
<p>Exports from special economic zones (SEZs) grew by 15 per cent year-on-year to Rs 3.6 lakh crore in 2011-12, according to the data by the Export Promotion Council for EOUs and SEZs (EPCES).<br /><br /></p>.<p>During 2010-11, exports from tax-free enclaves stood at Rs 3.1 lakh crore.<br /><br />"The imposition of Minimum Alternate Tax (MAT) on the book profits of SEZ developers and units has discouraged investments," EPCES Chairman Jatin R Mehta said in a statement today.<br /><br />As on March 31, this year, total investments in SEZs were about Rs 2.01 lakh crore and the sector has provided employment to 8.4 lakh people, he said.<br /><br />Besides, the council said major SEZ developers are concerned over the deadline for profit-linked deductions with introduction of the Direct Tax Code (DTC) from April 1, 2013.<br /><br />The code, which will replace existing Indian Income Tax Act 1961, intends to cut tax rates to bring more people and companies under the tax net, phase out profit-linked exemptions for companies and replace them with investment-linked incentives.<br /><br />"We request the Department of Revenue that DTC may not be implemented till 2015 in respect of SEZs as it will help in increasing exports and investments," Mehta said.<br /><br />Under the SEZ Act, SEZ units get 100 per cent tax exemption on profits earned in the first five years of operation, a 50 per cent exemption for the next five years and another 50 per cent exemption on re-invested profits in the following five years.<br /><br />SEZ developers, on the other hand, get 100 per cent tax exemption on profits for 10 years, which they can choose to invoke within the first 15 years of operation.<br /><br />The council said of the 589 formally approved SEZs, 389 SEZs have been notified and 153 SEZs were in operation as on 31st March, 2012.<br /><br />IT, IT-hardware, petroleum, engineering, leather and garments are the leading exports from the SEZs.<br /><br />In the wake of uncertainties over tax sops, scores of SEZ developers were given more time to execute their project and some of them have surrendered.</p>