SPECIAL ECONOMIC ZONES

PRESENTED BY VIDHI VERMA

 INTRODUCTION

A special economic zone (SEZ) is an area in

which the business and trade laws are different
from the rest of the country. SEZs are located
within a country's national borders, and their
aims include increased trade balance,
employment, increased investment, job creation
and effective administration.
 OBJECTIVES

Increase exports of goods and services.

Promotes investment (domestic and foreign).
Infrastructure development.
Employment generation.

To create additional economic activity.

 ADVANTAGES

Liberal Economic Laws .

TAX Rebates .

Developed Infrastructure .
 ISSUES/DISADVANTAGES

Decrease in agriculture land .

Rehabilitation of villages .
Loss of livelihood for farmers .
Loss of Tax Revenue .
 SEZ ACT 2005

It seeks to liberalize the policy of establishment

of SEZs in private sector.
Tax rebates.

Rebates in CIT (Corporate Income Tax)

Exemption from MAT (Minimum Alternate Tax)

and Division Distribution Tax.
 SPECIAL TYPES OF SEZ
There are two types of SEZ :-
Reverse SEZ - These are special type of SEZ which
are established in a foreign country having cheap
and abundant input/ feedstock for importing their
products to the home country.
Finance SEZ (International Finance Service Center
IFSC) - It is a special type of SEZ in which laws
related to financial sectors (like banks, stock
exchanges etc.), foreign investor and convertibility
are very liberal.
THANK YOU