What is S E Z and E P Z What are the merits and demerits of them - Social Science - Poverty as a Challenge

Question

What is S E Z and E P Z ? What are the merits and demerits of them?

Garima · Accepted Answer

Dear Student,
A SEZ unit which has been
set up for carrying on manufacturing, trading or service activity
has both advantages as well as disadvantages SEZ advantages are
quite far more as compared to its disadvantages which are almost
negligible
Advantages

15 year corporate tax holiday on export profit
– 100% for initial 5 years, 50% for the next 5 years and up
to 50% for the balance 5 years equivalent to profits ploughed back
for investment

Allowed to carry forward losses

No licence required for import made under SEZ
units

Duty free import or domestic procurement of goods
for setting up of the SEZ units

Regards