No break on SEZ express, says Nath

WRITANKAR MUKHERJEE

TIMES NEWS NETWORK[ SATURDAY, NOVEMBER 25, 2006 08:46:28 PM]

KOLKATA: The finance ministry may have voiced apprehensions over
estimated revenue losses exceeding Rs 1 lakh crore by 2009-10 on account
of tax holidays to special economic zones (SEZs).

But union commerce and industry minister Kamal Nath is unwilling to buy
the argument. On the contrary, he stressed "the governmment would press
ahead with plans to develop SEZs across the country, especially since
the comprehensive SEZ Act has been passed".

"This is just a point of view to look into the matter. The government
will go not refrain from developing SEZs across the country. The finance
ministry should have pointed out these issues earlier.

Now that we have passed a comprehensive SEZ Act, we will continue with
our plans to develop SEZs," said Mr Nath. He was speaking to newsmen on
the sidelines of the 33rd annual awards ceremony of Gem & Jewellery
Export Promotion Council here on Saturday.

Nevertheless, Mr Nath, clarified that "there was real no dispute between
the commerce and finance ministries" on the issue of developing SEZs.

Be that as it may, the minister of state for finance, Mr S S
Palanimanickam, had informed Lok Sabha on Friday that of the total
estimated revenue losses of Rs 1,02,621 crore between 2006-07 to 2009-10
due to SEZs, the loss on account of direct taxes would be about Rs
53,740 crore and indirect tax at Rs 48,881 crore. It is expected that
300 SEZs will come up between 2006-07 and 2009-10.

Mr Nath also complimented West Bengal's SEZ model saying "it would
generate more employment opportunities". Earlier, the minister indicated
the Centre plans to sanction several SEZs for the gem and jewellery sector.

"The sector also needs to draw up a comprehensive strategy in areas like
design, branding and working condition of artisans to achieve
competitive advantage in the global market. It is only then that we can
achieve annual export revenues of $20 billion from the present $17
billion from this sector," Mr Nath said.

India's share of global trade in gems and jewellery is tiny 3.5% and
exports were at $9.6 billion during April-October 2006.

http://economictimes.indiatimes.com/articleshow/573924.cms