By Joanna Faith

The Indian government is planning to change legislation surrounding special economic zones (SEZ) so that companies with multiple units in the areas will not be penalised. In 2005 India introduced tax benefits on export profits of units in an SEZ. But the way in which export profits were computed – in proportion to the total turnover of the business of the taxpayer - meant the rules only benefited a part of the profits of the SEZ unit.