The whole idea of SEZ was to give Tax Free regime for the units put up/operating there in spite of numerous hurdles such as isolated and remote location, lack of social and physical infrastructure coupled with difficulty in procuring inputs from DTA (Domestic Tariff Area) and receiving drawbacks.

Government's move to impose Minimum Alternate Tax (MAT) and the Dividend Distribution Tax (DDT) would not be conducive for practical viability of units operating in SEZ, said Sanjay Budhia, Co-Chairman of CII National Committee on International Trade Policy and Exports and Managing Director of Patton International Limited.

Budhia has strongly suggested and asked the Government to allow one time 100 percent income tax holiday for five years for all manufacturing units in SEZ. This will go a long way in motivating exporters to enhance and promote exports through their units in SEZ. 

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