Relief for export infrastructure
The UPA government may consider providing tax holiday to export infrastructure projects under Section 80 (IA) of the Income Tax Act.india Updated: Mar 14, 2006 02:29 IST
The UPA government may consider providing tax holiday to export infrastructure projects under Section 80 (IA) of the Income Tax Act. While the roads, airports and power projects enjoy the tax breaks, export infrastructure projects are yet to join this league.
Sources said that Finance Minister P Chidambaram and Commerce Minister Kamal Nath might discuss this issue shortly to provide impetus to export infrastructure projects to boost the share of Indian exports in the international markets. The first such project that may be considered for 80 IA benefits will be the Rs 400-crore Indian Expo Centre and Mart (IECM) set up through an SPV, christened as India Exposition Mart Ltd (IEML), promoted largely by handicrafts exporters.
In the budget for 2006-07, Chidambaram has extended the tax holiday for infrastructure projects till March 31, 2009 while the ultra mega power projects will enjoy the tax breaks one year longer, up to March 31, 2010.
Once there is convergence of views between Kamal Nath and Chidambaram, the government may include such projects for tax breaks to boost exports to beyond US $100 billion during the next fiscal. Extending tax breaks may be announced by Kamal Nath in his foreign trade policy to be unveiled later this month.
This will have to be followed by operational notifications by the Finance Ministry. The exporters, with participation from export promotion councils, propose to set up several such export marketing centre, which are being contemplated in Mumbai, Pune, Chennai, Hyderabad and Bangalore.