Budget 2012: Segments Expected to Get a Hike
By siliconindia   |   Thursday, 16 February 2012, 00:46 IST   |    1 Comments
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Removal of MAT on SEZs Tops Nasscom
Removal of MAT on SEZs Tops Nasscom Simplification of tax strategies and removal of Minimum Alternate Tax on Special Economic Zones tops the list of Budget wish list of Som Mittal, President of India's IT and BPO services industry body. Last year, Minimum Alternate Tax (MAT) of 18.5 percent on Special Economic Zone (SEZ) developers and units was made obligatory by the Finance Minister last year that ended up with a sharp deceleration in investments in SEZs. While the commerce ministry is allowing for different measures to dilute the conditions for setting up an SEZ, many, including Mittal are hoping that the finance minister will remove MAT for SEZ units and developers. The Budget is significant for the government since it presents several suggestion of what kind of tax revenues it expects in the new financial year and what kind of spending it aims to undertake. It is also when the government makes approximation of the rate of growth for the economy and on what could be the drivers of this growth. So it's vital for all the other parties concerned, investors, businesses and the common man as they too can make their individual choice on saving and spending based on these estimates. Many of these estimates can eventually turn out to highly optimistic.

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