India Inc demand for removal of MAT for SEZ developers, units

Q: The previous government did not pay any heed for removal of MAT for SEZ developers and units. Will budget 2014-2015 going to exempt special economic zones (SEZ) developers and units?

Samrat,

30th June 2014

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removal of mat on sez developers

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Biggest expection of infrastructure sector is removal of MAT this budget. Many ifra projects are stuck or delayed etc. Will this issue be resolved via budget?

Armaan Saxena, Bangalore

7th July 2014

Comment

The previous government in the budget 2011-12 imposed MAT of 18.5 % on SEZ developers and units. The current MAT rate is 20.96 % and is applicable on book profits. Looking at the current fiscal situation, this demand may not be met and Jaitley is not expected to deliver a populist Budget

Ravindra Singh,

30th June 2014

Comment

@Samrat, You are correct that the earlier government did not do anything for removal of MAT for SEZ developers, units. But this time in order to revive the slump in the industries and safeguard the interests of the MNCs and large conglomerates, Corporate India has requested the Finance Minister Arun Jaitley to exempt special economic zones (SEZ) developers and units from the levy of minimum alternate tax (MAT).

This time they are hoping for the best that Modi Government might listen to their request. SEZ developers are hopeful that the MAT levy would be removed in the upcoming budget. Finger Crossed....

Balwinder Singh,

30th June 2014

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