SEZ Ppt
SEZs
An International Trade Outlook
What are SEZs?
A region that has economic and other laws that are more free-market-oriented than a country's typical laws
Rest of India called “Domestic tariff area”
SEZ Act 2005 came into effect in Feb
2006 & is an improvement over the SEZ
Act 1995
Facts & Figures
No. of formal approvals
584
No. of notified SEZs
381
No. of operational SEZs
187
Units approved in SEZs
3400
Land under SEZs
68,027 hectares
Total investment
Rs. 2,49,630.82 Crore
Employment generated
8,15,308 persons
SEZ Exports in 2011-12
Rs. 2,60,972.89 Crore
Objectives of SEZs
Generation of additional economic activity
Promotion of exports of goods and services
Promotion of investment from domestic and foreign sources
Creation of employment opportunities
Development of infrastructure facilities
SEZ Incentives & Facilities
Exemption from customs/excise duties
Income
Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years
Exemption
from minimum alternate tax
Exemption
from dividend distribution tax
Exemption
from Central Sales Tax (CST)
Exemption
from Service Tax
Types of SEZs
Free Trade Zones (FTZ), Export
Processing Zones (EPZ), Free
Zones (FZ), Industrial parks or
Industrial Estates (IE), Free Ports,
Urban Enterprise Zones and others
Single product SEZ (Sector specific) vs Multi-product
SEZ: could be integrated or non-integrated SEZs in a port or airport
SEZs Break-Up
Formal approvals
Pharma; 5% Textiles; 5%
Others; 25%
Multi product; 4%
Utilities; 61%
SEZ Act 2005: Important Provisions
100%
tax exemption for 5 years, 50% for the next 5 years, and 50% of the ploughed back export profits for the next 5 years
SEZ
developers continue to get 100% income tax exemption for 10 years in a block period of 15 years (not anymore)
Free
trade and warehousing zones to create world class trade-related infrastructure
SEZ
An International Trade Outlook
What are SEZs?
A region that has economic and other laws that are more free-market-oriented than a country's typical laws
Rest of India called “Domestic tariff area”
SEZ Act 2005 came into effect in Feb
2006 & is an improvement over the SEZ
Act 1995
Facts & Figures
No. of formal approvals
584
No. of notified SEZs
381
No. of operational SEZs
187
Units approved in SEZs
3400
Land under SEZs
68,027 hectares
Total investment
Rs. 2,49,630.82 Crore
Employment generated
8,15,308 persons
SEZ Exports in 2011-12
Rs. 2,60,972.89 Crore
Objectives of SEZs
Generation of additional economic activity
Promotion of exports of goods and services
Promotion of investment from domestic and foreign sources
Creation of employment opportunities
Development of infrastructure facilities
SEZ Incentives & Facilities
Exemption from customs/excise duties
Income
Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years
Exemption
from minimum alternate tax
Exemption
from dividend distribution tax
Exemption
from Central Sales Tax (CST)
Exemption
from Service Tax
Types of SEZs
Free Trade Zones (FTZ), Export
Processing Zones (EPZ), Free
Zones (FZ), Industrial parks or
Industrial Estates (IE), Free Ports,
Urban Enterprise Zones and others
Single product SEZ (Sector specific) vs Multi-product
SEZ: could be integrated or non-integrated SEZs in a port or airport
SEZs Break-Up
Formal approvals
Pharma; 5% Textiles; 5%
Others; 25%
Multi product; 4%
Utilities; 61%
SEZ Act 2005: Important Provisions
100%
tax exemption for 5 years, 50% for the next 5 years, and 50% of the ploughed back export profits for the next 5 years
SEZ
developers continue to get 100% income tax exemption for 10 years in a block period of 15 years (not anymore)
Free
trade and warehousing zones to create world class trade-related infrastructure
SEZ