An empowered Group of Ministers (eGoM) is scheduled to meet on August 7 to consider crucial policy issues on Special Economic Zones, a move to push reforms in a post-confidence motion scenario.
The eGoM, headed by External Affairs Minister Pranab Mukherjee, is likely to take up issues including demand from developers to revise the 5,000 hectare land ceiling for one SEZ.
It may also decide on the finance ministry's proposal on putting a minimum alternate tax (MAT) on units in SEZs and industry's demand to exempt the units from payment of service tax, an official told PTI.
Under the provisions of the SEZ Act, the units are allowed 100 per cent tax exemptions for the first five years and 50 per cent for the next five years. Further, if profits are ploughed back the exemptions may extend beyond 10-years.
The SEZs have remained controversial facing oppositions from major political parties, mainly the Left, which has withdrawn its support from the government.
"The eGoM has not met for a long time. The meeting will be held on August 7. A lot of issues are there. We hope some of them will get sorted out," the official said.
The board of approval has so far given formal nod to 467 SEZs, of which 225 have been notified.
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