Special economic zone policy its problem and impacts on removing regional disparity
SEZ is a geographical region that is designed to export goods and provide employment. SEZs are exempt from federal laws regarding taxes, quotas, FDI-bans, labour laws and other restrictive laws in order to make the goods manufactured in the SEZ at a globally competitive price. SEZ and India Government policy
The Special Economic Zones Act, 2005, was passed by Parliament in May, 2005 and came into effect on 10th February, 2006. The main objectives of the SEZ Act are: (a) generation of additional economic activity
(b) promotion of exports of goods and services;
(c) promotion of investment from domestic and foreign sources; (d) creation of employment opportunities;
(e) development of infrastructure facilities;
The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include: •
Exemption from customs/excise duties for development of SEZs for authorized operations approved by the BOA [Board of Approval]. •
Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act. •
Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act. •
Exemption from dividend distribution tax under Section 115O of the Income Tax Act. •
Exemption from Central Sales Tax (CST).
Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act). And currently, there are about 158 SEZs (as of today) operating throughout India and an additional 588 SEZs (as of today) that have been formally/principally approved by the Government of India Issues under consideration
SEZs in many cases displace & uproot lakhs of farmers, send land prices skyrocketing in the region. But in most cases benefits of the SEZs fail to reach those people. 2)
There are chances to exploit SEZs policy to acquire lands at...
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