Question : REVENUE LOSS IN SEZS

(a) the cumulative revenue implications on account of the various concessions given to the Special Economic Zones (SEZs) between 2004-05 and 2009-10;

(b) whether the Government has directed the Central Board of Excise and Customs(CBEC) and Central Board of Direct Taxes (CBDT) to furnish a report on the possible violations by entities operating in SEZs;

(c) if so, whether CBEC and CBDT have submitted their reports to the Government;

(d) if so, the details thereof; and

(e) the action taken by the Government on the recommendations contained in the said report?

FINANCE MINISTER (SHRI PRANAB MUKHERJEE)

(a) to (e) : A Statement is laid on the Table of the House.

Statement referred to in reply to parts (a) to (e) of LokSabha Starred Question No. 620 for answer on 18th May, 2012

(a): The revenue implications on account of various tax concessions are maintained in the form of the Revenue Foregone statement (“Revenue foregone under the Central Tax System”) in the Receipts Budget, which is a part of the Annual Budget. The estimates of revenue foregone on account of direct tax deductions given to the Special Economic Zones (SEZs) between 2004-05 to 2009-10 are as under:-

(Rs. In crore)
Financial Year	Revenue Foregone on SEZs
2004-05	1340
2005-06	6902
2006-07	866
2007-08	3000
2008-09	4466
2009-10	5518 

 ( Rs. In crore)
Financial Year	Central	Customs Excise
2004-05	20.19	1057.12
2005-06	23.31	1047.49
2006-07	220.92	1642.35
2007-08	851.76	1803.95
2008-09	804.73	2324.29
2009-10	1547.04	3987.06