Commerce ministry tries to resurrect SEZs yet again

The commerce ministry has asked the finance ministry to allow Special Economic Zones (SEZs) to sell products in domestic market at free trade agreement rates for promoting manufacturing in the country.

Additional secretary in the department of commerce Arvind Mehta on Wednesday said that the imposition of minimum alternate tax and dividend distribution tax has “derailed” the growth of SEZs.

He said that there was a need for doing free trade agreements (FTA) with the country’s SEZs. The move would help the units in SEZs to sell products at lower or zero rates in the domestic market. “If you have done FTA with Japan, Korea and Asean, do a FTA with yourself first. Do it with your SEZs, let it (SEZ products) come into the domestic tariff area at tariffs no higher than what you allowed to FTA nations.