Special economic zones act, 2005 tax management india. Since india has adopted the idea of the special economic zones from china it becomes pertinent to study the history of economic development in india and china. Responsibilities of provincial investment promotion authorities. The gazette of india ministry of commerce and industry. Oecd general recommendations on the use of economic zones 6. Special economic zone sez, any of several localities in which foreign and domestic trade and investment are conducted without the authorization of the chinese central government in beijing.
This paper is an attempt to understand why some zone schemes succeed and others fail in promoting economic growth. The sez act provides for the following licences to be issued under the act. This act may be cited as the special economic zones act, 2015 and shall come into operation upon the expiry of ninety days from the date of its publication. Way forward a handbook for economic zone development. Special economic zones act 2014draft 1 an act to repeal chapter 5, liberia industrial free zone authority, of title 30, public authorities law, liberian code of laws revised and to enact in lieu thereof a new chapter 5 to be known as the special economic zones act of 2014 preamble. The federal government and provincial governments may establish special economic zones by themselves or in collaboration with private parties under various modes of collaboration including public. Operator licence corporate entity engaged in the management of a special economic zone. The ministry of finance, trade and the economic planning is proposing the following policy changes for the regulation of the international trade zone act 1995.
This act may be cited as the special economic zones act, 2015 and shall come. According to the special economic zones sezs act, 2005 416 kb pdf file that opens in a new window, units operating from within the sez will be eligible for 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. Special economic zone board means the board of directors of an individual special economic zone entity appointed in terms of section 255. Your browser will redirect to your requested content shortly. Trends in zone development while special economic zones are often treated as an innovative topic in development economics, citywide free zones with goals and methods not too different from those employed in modern zones were in place in gibraltar and singapore as early as 1704 and 1819, respectively. Licensed entities under the seza will be able to bene.
Article 25 a guangdong provincial special economic zones development company shall be set up to suit the expanding economic activities in the special zones. They are established with an aim to purport development, promote rapid economic growth by providing tax and business incentives for attracting foreign technology along with investment. Suggested elements for designing effective economic zones 7. The special economic zones act, 2005 has been enacted with the major objective of generation of additional economic activity, promotion of export of goods and services, investment from domestic and foreign sources and creation of employment opportunities. Despite three decades of research on economic zones, many important questions remain unanswered. Special economic zones sezs chinapakistan economic. Maritime zone exclusive economic zone and continental shelf. Development and implementation of special economic zones.
Possible constraints to success of economic zones in mena 5. Regulations on special economic zones in guangdong province. Interpretation in this act, unless the context otherwise requires agricultural zone means a special economic zone declared as such. Special economic zone what is a sez indian economy. A lot of factors influence the performance of special economic zones in a country e. Special economic zones act 16 of 2014 south african. Special economic zone act is a program introduced by the state for the development of the country. Printing law of the sea national legislation doalosola. Free economic zones in the republic of tajikistan shall be established to. The sezs, earmarked as dutyfree enclaves, have a relaxed and business friendly policy regime, aimed at promoting rapid industrial development and employment generation. Provided that where such a proposal has been received. Be it enacted by parliament in the fiftysixth year of the republic of india as follows. A special economic zone sez is a geographical region that has economic laws more liberal than a countrys typical economic laws.
The act will come into operation on 15th december, 2015. The world economic forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas. How can africa ensure success for special economic zones. Introduction a special economic zonesez is an economic region in a country which is created for the purpose of promoting manufacturing exports and economic development through a wide variety of special exemptions, relating to taxes, quotas, cu. Sezs allow investors to operate under special conditions that are different from the rest of the economy and allow investors more privileges. Necessary offices shall be set up in the zhuhai and shantou special zones. Cpec will not only benefit china and pakistan but will have positive impact on iran, afghanistan, india, central asian republic. Progress, emerging challenges, and future directions. This act may be cited as the special economic zones act chapter 14. Issue special economic zones have potential to address many constraints facing investors and businesses in rwanda and support the achievement of key goals in edprs and vision 2020. This act is unique as it helps in backward and forward linkages of the economy. Duration of goods or services in special economic zones. Build economic and social capacity of the country, its individual regions and territories. Exclusive economic zone and continental shelf environmental.
They are established with an aim to purport development, promote rapid economic growth by providing tax and business incentives for. The central government has enacted the sez act with the major objective of generation of additional economic activity, promotion of export of goods and services, investment from domestic and foreign sources and creation of employment opportunities. Special economic zones are intended to function as zones of rapid economic growth by using tax and business. Designing economic zones for effective investment promotion. Since the special economic zone concept is relatively new in india, there are considerably less number of journals and ebooks in this field. An act to provide for the establishment of the zimbabwe special economic zones authority and to provide for the functions thereof. A special economic zone sez generally refers to a geographically demarcated area within a country that offers special economic regulations and procedures to. Zimbabwe selects three locations for special economic zones.
Leading zone programs and direct economic impact 10 country no. Policy on development of special economic zones in south. Zimbabwe has selected three locations for setting up pilot special economic zones sezs as the country seeks to reawaken investor interest after a dearth in foreign direct investment, a government minister said yesterday. Developer licence corporate entity engaged in developing and operating a special economic zone. The exclusive economic zone shall not extend beyond 200 nautical miles from the baselines from which the breadth of the territorial sea is measured. Special economic zones sezs or industrial parks can be an effective instrument to promote industrialization if implemented properly in the right context, as shown in some of the emerging countries, particularly those in east asia. Special economic zones sezs have contributed to economic development in several countries, while being utterly unsuccessful in others. In the last six months, over 100 approvals have been granted for setting up sezs spread over 15 states and 2 union territories, taking the current tally to 117 sezs. Economic zones act, 2005 sez act, which made several facilities and benefits available, several industrial houses have shown keen interest in setting up sezs and sez units. The special economic zones act, 2005 the second schedule see section 27 modifications to the income tax act, 1961 43 of 1961 a in section 10, a in clause 15, after sub. The special economic zones act, 2005 indian kanoon. Consideration of proposals for setting up of unit in a special economic zone.
Part iitiie special economic zones 4declaration of special economic zones. Special economic zones open knowledge repository world. Printing law of the sea national legislation doalos. Page 1 national legislation doalosola united nations asdf exclusive economic zone act, 1984, act no. The concept of sez is described by different countries of the world is no less than 19 different terms, such as free trade. Application for special economic zone operator perm. Special economic zones are intended to function as zones of rapid economic. Special economic zone sez, chinese pinyin jingji tequ or wadegiles romanization chingchi techu, any of several localities in which foreign and domestic trade and investment are conducted without the authorization of the chinese central government in beijing. Maritime zone exclusive economic zone and continental shelf order, 2014. However 30 years of experience have shown mixed results with many successful and.
It is the declared policy of the government to translate into practical realities the following state policies and mandates in the 1987 constitution, namely. The government of maharashtra has adopted the sez policy for developing special economic zones in the state. Authority means the zimbabwe special economic zones authority. White paper international trade zone act ministry of finance. Special economic zones rules, 2006 tax management india. This act shall be known and cited as the special economic zone act of 1995. Many sezs offer a liberalized business climate and lower taxes and tariffs. Whats so special about the special economic zones act.
This act is administered by the ministry for the environment. Chinapakistan economic corridor is a framework of regional connectivity. Provisions of incometax act, 1961 to apply with certain modification in relation to developers and entrepreneurs. Access both online and pdf versions of all ey global tax alerts. Special economic zone or sez refers to a totally commercial area specially established for the promotion foreign trade. Incorporated as a notforprofit foundation in 1971, and headquartered in geneva, switzerland, the forum is tied to no political, partisan or national interests. An act to provide for the establishment of the zimbabwe special economic zone. Sep 20, 2016 a special economic zone sez generally refers to a geographically demarcated area within a country that offers special economic regulations and procedures to entities which operate within the zone.
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