Special economic zones (SEZ) have been given a body blow in the form of 18.5 per cent minimum alternate tax (MAT). The effective tax rate would be 20 per cent, including the surcharge and education cess. SEZ developers would also have to pay 16.23 per cent tax on the dividend distributed after June 1. Both developers as well as units in these tax-free enclaves were earlier exempted from MAT under Section 115 JB of the Income Tax Act. Nearly 130 SEZs are operational at present. Exports from SEZs rose from Rs 13,284 crore in 2003-04 to Rs 2,20,711.39 crore in 2009-10.crackcrack
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