What is the difference between sez and epz

Log in through your institution. Common problems encountered by the Asian zones include inadequate infrastructure provision, social problems due to the high percentage of female workers and the exploitation of the indigenous labour force, inefficient government administration and low standards of management, vulnerability to changing conditions in the world economy as well as competition among themselves because of similar products and markets. The law had provided complete tax-holiday for SEZ units till March on their export earnings.

The law also permits them to work as real estate developers since they can use 75 per cent of the area in the multi-product zones for building houses, malls, golf courses and multiplexes. OBUs are virtually foreign branches but located within India.

This is also called OBU. In SEZ, service tax is abolished or ended. Conditions for SEZs- While units are required to political net foreign earnings for 3 years; it permits per cent foreign investment in manufacturing activities, including items which are reserved for Small-scale industries.

The manufacturing units are given tax holiday for a fixed period of time so as to make the product competitive in the international market.

The multinational companies used EPZ to their great advantage by moving their establishments from country to country after the tax holiday ended. Sign in. Log into your account. Forgot your password? Password recovery. Recover your password. Get help. Utkal Today. By Aman Rai. September 1, What is SEZ? What is EPZ? They were created by the governments of various countries with certain aims in mind like: To attract the foreign investments Develop an area by raising infrastructure and providing jobs to the local population Promote the technology and create man skilled power To increase the economic growth of the country However, limited success or failure of it in some countries gave rise to the concept of SEZ.

Infrastructure of SEZ consists of manufacturing units, townships, roads, hospitals and schools and other services but EPZ is confined to manufacturing establishments. The benefits of SEZ are more towards the growth of domestic business where EPZ has the main objective of developing exports business.

SEZ is open to all fields of businesses like manufacturing, trading and service but EPZ focuses more on manufacturing.