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Go figure!
The ADB has joined the ranks of Indian SEZ policy
critics! is that an international conspiracy or
national bankruptcy ? or what ?

Anivar


http://www.hindu.com/2007/03/28/stories/2007032819961800.htm
ADB: tax sops for SEZs unnecessary
Special Correspondent
NEW DELHI: The Asian Development Bank (ADB) on Tuesday
joined ranks with the critics of Special Economic
Zones (SEZs), saying that the tax incentives being
offered by the Government to such developers and the
units in these zones were "unnecessary".

Noting that such tax breaks were "unnecessary," the
bank's report, "Asian Development Outlook 2007," said:
"SEZ tax inducements are expensive, and come at a time
when the Government is struggling to provide adequate
infrastructure in the wider economy".

According to estimates by the National Institute of
Public Finance and Policy (NIPFP), the Government is
expected to lose about Rs. 1,00,000 crore in revenue
on account of fiscal concessions to SEZs.

The ADB report pointed out that the special tax
incentives would open loopholes for tax evasion and
undermine investments in firms located outside such
zones, as these units would suffer from "worse
infrastructure and higher taxes."

Instead, better infrastructure and more bureaucratic
efficiency in SEZs would be sufficient to stimulate
investment, the report said.



                
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- --
Anivar Aravind
moving Republic
Global Alternate Information Applications(GAIA)
Peringavu.P.O
Thrissur-680018
Kerala
Ph. +91 9446545336
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