Batting for the worried SEZ developers who fear withdrawal of incentives in the new direct tax code, Commerce and Industry Minister Anand Sharma on Friday said his ministry would ensure that the sops continue.
The Commerce Ministry has written to the Finance Ministry to retain all the fiscal incentives for the special economic zones in the new direct tax code, for which draft paper has been circulated in the public domain.
"I have already written to the Finance Minister and we will be discussing it," Sharma said after the launch of a OECD Investment Policy Review report on India at a function jointly organised by industry body CII and the Department of Industrial Policy and Promotion.
Sharma said his ministry backs continuation of sops like income tax holiday for SEZs.
"We feel that those tax concessions which specifically meant for SEZs should continue," he said.
The draft direct tax code, that will lead to overhaul of the Income Tax Act, has created uncertainty among developers and units in the SEZs over continuation of the tax sops.
"We will ensure that investments in SEZs remain incetivised and attractive," the minister said.
The ministry has underscored the need for continuation of the tax-free enclaves, stating that fiscal sops are the main attractions for the promotion of SEZs.
