SEZ sunset clause may be extended
Commerce and revenue departments have initiated discussions to extend the sunset clause for the scheme that ends March 31, 2020. After reducing the minimum alternate tax to 15% from 18.5% and slashing corporate tax rate to 22% from 30% s part of the Rs 1.45 lakh crore mega stimulus package, this is yet another attempt to boost the sluggish economy which grew at 5% in first quarter, the lowest in the last 6 years.
“Extending the sunset clause will help address the slowdown in SEZ space, especially in manufacturing sector,” stated Rahul Shukla, executive director, PwC.
Last year, a government panel chaired by Baba Kalyani had suggested a host of steps to reinvigorate the sector including delinking SEZs from exports, foreign currency payments and allowing supplies to domestic market in rupees for service SEZs.