The Government is planning to revamp Special Economic Zones (SEZs) so as to boost manufacturing under Make in India scheme.
There are also plans to exempt factories located in SEZs, from Minimum Alternate Tax (MAT) as it has been identified as one of the main reasons for the stunted growth of these zones. At present factories have to pay MAT at the rate of 18,.5 per cent since 2012.
Minimum area requirement for smaller and special category States will also be reduced.
Also, the panel has sought to reduce the the minimum area needed to 4 hectares from 25 hectares for establishment of sector-specific SEZs such as biotechnology, non-conventional energy equipment, agro-based food processing and services in the North-Eastern states, Goa, Jammu and Kashmir, Uttarakhand and the Union Territories.