SEZ is a specific earmarked area inside a state which acts as foreign territory for tariff and trade operations. Govt. provides tax exemption i.e IT, Excise, customs, sales etc. and also subsidized water and electricity etc. SEZ can be sector specific or multi product sez. It helps in the development of infrastructure of the area around the SEZ, provides employment to people, and makes the exports more viable due to tax breaks. All this will help the country's products to become more competitive vis-a-vis providing all round development of region.
It should be noted 60% of the total allotted area of the SEZ, is used to provide housing facilities, malls, multiplexes etc. Also Tax exemption is for specific period say for 10 yrs or so.
Unitedworld Executive.
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