- The present SEZ law extends tax benefits based on performance to the exporters.
- SEZs are eligible for benefits subject conditionally if they earn positive Net Foreign Earnings (NFE)
- Above is a violation of the WTO agreement and therefore USA disputed before WTO
- WTO asked India to withdraw SEZ subsidies and revise schemes
- Features of propose new scheme shall be
- Plug and Play model of Infrastructure will help in the co-existence of both SEZ and DTA units
- Industries will be able to utilize SEZ infrastructure at a lower cost and so bring new FDI
- enabling the single window clearance for new units
- enable INR billing against both goods and services;
- attractive tariffs for supplies in the domestic market instead of full Customs duties
