Nasscom seeks tax friendly SEZ policy beyond 2020

New Delhi: IT body Nasscom has urged the government to continue the tax incentives to units in special economic zones beyond March 2020, saying that such a move will provide industry with certainty and enable them to invest in long-term strategy.

Nasscom, in its pre-Budget recommendations submitted earlier this week, said IT-BPM industry contributes 6.6 per cent to the country's GDP, directly employs over 4.1 million skilled workforce and annually earns over $130 billion in foreign exchange.

"It would be useful to build on this strength by laying out a Special Economic Zones (SEZ) policy keeping the next 20 years in perspective.

This would provide industry with certainty and enable them to invest in a long-term strategy," Nasscom Senior Director and Public Policy Head Ashish Aggarwal said.

He said Nasscom has suggested that the new tax friendly SEZ policy should retain existing tax benefits and provide concessional rate of 9 per cent Minimum Alternative Tax (MAT). Also, there should be exemption from dividend distribution tax (DDT).