EPCES seeks government support to boost exports

New Delhi, September 12 () The Export Promotion Council for EOU and SEZ (EPCES) on Thursday sought to obtain government support to boost outbound shipments from special economic zones.

The vice president of the Council, Bhuvnesh Seth, requested the implementation of the system of regime prior to the GST for special economic zones (EEZs), since they are considered foreign lands and would be equivalent to direct imports.

He demanded to allow the reimbursement of the GST (tax on goods and services) to the SEZ units in the supplies made from the national tariff area by suppliers without a letter of commitment.

Seth also said that the annual increase in lease rent is an additional burden for the EEZ units in the current recession scenario, especially when the EEZ authorities have many reservations.

Under current circumstances, SEZ units are under pressure to compete in the foreign market, it said in a statement.

Similarly, it sought support for export-oriented units (EOU) to encourage more entrepreneurs to join the EOU scheme.

It is suggested that EOUs be treated in tandem with EEZs by granting income tax benefits and reimbursing infrastructure, he added.

Before the GST, the EOUs had exemption from customs and special taxes. Currently, the IGST benefit is granted to short-term EOUs by issuing notifications from time to time. It is requested to allow the permanent IGST exemption as allowed before the GST regime to attract new investments in the EOU scheme, he said.

The EEZs are the main export centers in the country, as the government offers several incentives and a one-stop dispatch system.

Exports from these areas exceeded Rs 7 lakh crore in 2018-19. RR ANU ANU