Leveraging Special Economic Zones (SEZ)
SEZs have contributed in a major way to the forex treasury of India in industrial infrastructure creation. IT/ITES SEZs remain the most successful SEZ format in the country contributing 60% of exports, 70% of investment and 80% of jobs created by SEZs till date. Moreover, 90% of SEZs approved in India cater to IT/ITES industry. To further augment the gains, a pragmatic approach to ensure credibility for continuity of the policy is necessary.
The solution is to free up the Units and/or the SEZ, which have outlived the tax benefits, or are not availing these benefits, from the restrictions and conditions imposed under the SEZ regulations. The constitution of the Study Committee under the chairmanship of Mr. Baba Kalyani to review the SEZ Policy was an assuring initiative of the Ministry of Commerce & Industry. We laud the recommendations of this Study Committee and seek support of Central Government in their implementation.
APREA members met with the officials at the Ministry of Finance in April 2021 have elucidated four specific areas (in the enclosed submission) which will deliver the requirements and all of which are from an ‘Ease of Doing Business’ perspective and are expected to enhance economic activity and employment generation, without any loss to Revenue:
− Permit INR based billing for domestic business
− Ease ‘exits’ - partial and complete
− Allow flexibility for usage of Non-processing area in the SEZ by the Developer
− Operational and Compliance relaxations
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APREA is seeking a joint meeting with the Ministry of Finance, Ministry of Commerce and Department of Revenue. Please contact This email address is being protected from spambots. You need JavaScript enabled to view it. if you wish to be involved.
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