A commerce ministry panel led by Bharat Forge chairman Baba Kalyani is batting for non-fiscal incentives for special economic zones (SEZ).

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The panel was formed earlier this month to look at options for overhauling laws related to the tax free export enclaves.

In a media release, the commerce ministry said that in the first meeting of the panel on June 20, Baba Kalyani told commerce minister Suresh Prabhu that creation of jobs was the biggest challenge and the group’s recommendation would focus on the issue.

“The group will make suggestions on shifting from fiscal incentives to employment based incentives, reframe the boundaries and introduce grandfathering clause for existing provisions,” the commerce ministry release added.

Other members of the commerce ministry panel on SEZs include Ajay Pandey, Managing Director and group Chief Executive Officer, GIFT City SEZ; Neel Raheja, Group President, K. Raheja Group and Arun Misra, Managing Director, Tata Steel SEZ.

The panel will meet again in mid July and will submit its report by August this year.

Presently, SEZs enjoy several fiscal incentives including calibrated exemption from paying income tax for 15 years and indirect tax sops.

First Published:Jun 25, 2018 7:47 PM IST