Mumbai:
Non-processing areas of special economic zones (SEZs) will not be eligible for
tax exemptions, state governments said. "The
empowered committee of state finance ministers on VAT unanimously feel that in
non-processing zones of SEZs, no one should impose on states anything relating
to states tax exemptions," VAT panel chairman Asim Dasgupta said. "In
other words, we are against any state tax exemption in any non-processing part
of SEZs," he said after a VAT panel meeting. While
several states have already come out with SEZ policy giving exemptions on overall
SEZs, he said, "What happened has happened. We are now of view that on non-processing
zones of SEZs no one should force states that they have to give tax exemptions,"
he said. The
union commerce ministry had also written to states to provide tax exemptions to
SEZs. While
the views of the states are in conformity with the centre''s SEZ Act, Dasgupta
said, "we are communicating our views to the centre because it is the unanimous
view of all states." A
union finance ministry official, meanwhile, said the views of states
are also in line with the SEZ Act. The
move will have great revenue implications for state governments.
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