Question

Which one of the following is not a characteristic of 'Special Economic Zone'?

• A. They do not have to pay taxes for a long period
• B. Government has allowed flexibility in labour laws
• C. They have world class facilities
• D. They do not have to pay taxes for an initial period of five years

Answer 1

Answer: (B)

Government has allowed flexibility in labour laws

Normal labour laws are applicable to SEZs, which are enforced by the respective State Governments. The State Governments have been requested to simplify the procedures/returns and for introduction of a single window clearance mechanism by delegating appropriate powers to Development Commissioners of SEZs.