New Propose SEZ Law can be a booster for Exporters

March 2, 2022
  • 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