New Delhi : The finance ministry has rejected the commerce ministry’s demand to remove minimum alternate tax (MAT) and dividend distribution tax (DDT) levied on special economic zone (SEZ) developers, Commerce and Industry Minister Nirmala Sitharaman told parliament Friday.
“There have been demands from various quarters for discontinuing of MAT imposed to SEZ developers and units and DDT levied on SEZ developers. Ministry of commerce and industry had recommended the restoration of original exemption from MAT and DDT to SEZ developers and units. However, ministry of finance has not agreed,” she told the Lok Sabha in a written reply.
There are a total of 196 functional SEZs now with maximum number of it in Tamil Nadu, followed by Maharashtra, Karnataka and Telangana.