FinMin asked to ensure NMIZ units enjoy tax sops post-DTC
New Delhi: Seeking to give a push to the manufacturing sector, Commerce and Industry Ministry on Tuesday asked its finance counterpart to incorporate provisions concerning exemption to units in NMIZs from capital gains tax in the Direct Tax Code (DTC) Bill.
The issue came up during the first meeting of Manufacturing Industry Promotion Board (MIPB) which was chaired by Commerce and Industry Minister Anand Sharma.
The government has been taking several steps to increase the share of the manufacturing sector in the GDP to at least 25 percent by 2020 from the present 16 percent.
In this regard, the National Manufacturing Policy (NMP) was announced, which provides for setting up of these zones.
National Investment and Manufacturing Zones (NMIZ) will be mega industrial zones with world class supporting infrastructure.
The government is offering a host of incentives like exemption from capital gains tax and a liberalised labour and environment norms to promote these zones.
Secretaries from various ministries, including Economic Affairs, Science & Technology, Revenue were present in today's meeting.
"The Department of Revenue was asked to ensure that the dispensation pertaining to relief from capital gains tax as approved in the NMP, is included in the Direct Tax Code (DTC) Bill, as was indicated by them," an official statement said.
Sharma also asked the Ministry of Labour to convene a tripartite meeting to take a final decision on amending Section 25 FFF (1A) of the Industrial Disputes Act, 1947, which deals with compensation to workers in case of closure of mines following exhaustion of minerals.
During the meeting, Sharma reviewed the progress of the proposed zones and said that the board will again review after three months for the early implementation of these mega infrastructure projects.
He has today called for accelerating the implementation of NMP.
"We had a review of the stage at which the various NIMZs are; issue which concern the states, the industry and the investors as well as the different departments. We will have a review after three months," Sharma told reporters here.
The statement said that in the meeting the Department of Science and Technology has given its consent to lodging the technology acquisition and development fund (TADF) under the NMP in the Global Innovation and Technology Alliance (GITA).
Since GITA is already operational, it will facilitate operationalisation of the TADF at the earliest, it said.
Further, it was decided that the Heavy Industry Department and National Manufacturing Competitiveness Council (NMCC) will outline measures to strengthen the public sector industries in the capital goods sector in the short and medium term and send their recommendations, which will be discussed in the next meeting of the MIPB.