Refund of VAT for SEZ investors in Maharashtra

Special Economic Zones (SEZs) in Maharashtra will get refund of Value Added Tax (VAT), state government said today.

Maharashtra Chief Minister Prithviraj Chavan told reporters after the weekly cabinet meeting that government was working on building a consensus on the draft SEZ bill.

"There should not be any uncertainty due to absence of a law, and the decision has been taken to bring clarity to the concessions offered to the investors," he said.

"The VAT amount will have to be paid by the investor, which will be later reimbursed in a time-bound manner. We don't want local taxes to be exported," he added.

As many as 117 SEZs in the state, including the Mihan project in Nagpur, had got Centre's in-principle approval; of which 63 had been notified and 24 had become operational, he said. "In the 24 SEZs, 64 units have started and Rs17,000 crore have been invested. About 86,000 persons have been employed there."

Chavan assured that the SEZ act will be passed soon.

He also announced that Non-Agriculture (NA) tax and royalty tax on minor minerals would be waived.