Govt mulls permitting SEZs to sell domestically on duty-foregone basis

 

With the proposed amendment of the SEZ Act taking time, the government is considering an executive order to allow SEZ units to sell their goods domestically by paying just the duty foregone on inputs, that would make them more competitive. The move could help boost the attractiveness of SEZs, which have taken a substantial hit after the introduction of the minimum alternate tax and the kicking in of the sunset clause on direct tax exemption for units. The Commerce Department has proposed to the Finance Ministry that this should be allowed through a notification, as an amendment to the SEZ Act may take a long time. The Export Promotion Council for EOUs and SEZs–a body representing the interests of SEZ developers and units–has long been pushing for SEZ units to be allowed to sell in the DTA on a duty-foregone basis, as per a report. 

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