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New direct tax code: Commerce Min bats for SEZs
October, 05th 2009

Commerce ministry has written to finance ministry to retain all the fiscal incentives for the Special Economic Zones in the new direct tax code, for which draft paper has been circulated in the public domain.

"We have told them (Finance Ministry) to continue the SEZ benefits in the new tax code," a senior Commerce Ministry official said.

The ministry has underscored the need for continuation of the tax-free enclaves, stating that fiscal sops are the main attractions for the promotion of SEZs.

The draft direct tax code that will lead to the overhaul of the Income Tax Act has created "uncertainty" among the developers and units in the SEZs.

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