Govt may slash MAT on SEZs

In what could be a major boost to India´s Special Economic Zones (SEZs), the government is set to reduce the Minimum Alternate Tax (MAT) on Special Economic Zones (SEZ) from 18.5 per cent to 7.5 per cent. The move is expected to be announced in the Budget for next financial year. The BJP-led government has been vocal about boosting the country´s SEZs, which have seen slow implementation after imposition of MAT and dividend distribution tax (DDT) on the tax-free enclaves. A decision on MAT and DDT on SEZs was expected to be taken up during this year´s Budget.