With the upcoming Budget round the corner, Som Mittal, president of India's IT and BPO services industry body, Nasscom says removal of Minimum Alternate Tax on Special Economic Zones and simplification of tax strategies top the list of his Budget wish list.
"We need the government to ensure that we have a positive business environment. It is necessary for the government to give a message that India is in business, our policies and tax regime are consistent. Last year, we introduced MAT on SEZ. I think it gave a very wrong signal. I hope that this year the FM would remove the MAT."
Last year, Minimum Alternate Tax (MAT) OF 18.5 percent on Special Economic Zone (SEZ) developers and units was imposed by the Finance Minister as a result of which there was a sharp deceleration in investments in SEZs.
While the commerce ministry is considering various measures to dilute the conditions for setting up an SEZ, many, including Mittal are hoping that the finance minister will remove MAT for SEZ units and developers.
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Updated Date: Jan 21, 2015 12:03:05 IST