Finance ministry raises concerns on proposed tax sops under DESH Bill

Says such concessions may stir debate of extending incentive for all firms

The finance ministry’s revenue department has raised concerns over the proposed revamped law for Special Economic Zones (SEZs) that offers some direct tax concessions to companies setting up units in the hubs, people aware of the matter said.

The commerce department’s new draft Development (Enterprise and Services) Hub (DESH) Bill, 2022, proposes to freeze the concessional corporate tax rate of 15 per cent for all greenfield units in these hubs under the section 115BAB of the Income Tax Act. The concessional tax rate will also be available to brownfield units, subject to certain conditions.

“The ministry is not in favour