SEZs need to go in Goa
They show us images of Jebel Ali or Shenzhen but end up giving us SEZs the size of Parking Lot 3A in Shenzhen. Some say – a simple tax avoidance anti competitive land grab.
Cipla, for instance, has already started work on a notified SEZ and has even pumped in about Rs 500 crore into the project. The Commerce Secretary has also made it clear that any claims for compensation will have to be borne by the state.
The eager investors should realize the extremely low amount of buy-in of the entire SEZ policy among the public. There is no government official who can articulate the SEZ policy which envisages individual companies to setup 10,20,30 hectare private tax havens. There is no parallel to this anywhere in the world. Given such a ground reality, the policy risks are clear. Companies that have already invested in notified SEZs can still operate these new units. Software written in non-SEZs will still work, drugs manufactured in non-SEZs will still be sold.
See what the famous architect Charles Correa has to say.
The intention of permitting SEZs is to reap the benefits of industrialisation and consequent employment generation. These can be served without SEZs (also) if incentives are extended to incoming industries,” internationally renowned architect and vice-chairman of the task force, Charles Correa, said while reading out the body’s resolution here.
Pillai said, “Notified means the State has no locus standi to withdraw anything – there’s no provision under the law for the State Government to recommend denotification.”
Yes, yes, we have all heard this line before. In bold letters.
Goods once sold cannot be taken back or exchanged.
Also read previous posts : SEZ Chat, PIO University in an SEZ ? , IT SEZ – Everyone wants a holiday, Minimum Alternate Tax issue, Everything is wrong with us (maximum size cap on SEZ), Panel extends IT holiday to 2019 , and more