Country's industrial sector had been awaiting the law that ensures special provisions and incentives for industries to be established in SEZ.Bhairahawa SEZ, which was inaugurated in November last year, is ready to host industries. But the government has received only few applications from industrialists as incentives and facilities proposed by the government will come into effect only after the SEZ Bill is approved by the parliament.
SEZ Bill has provisioned that investors establishing industries in SEZ will get one-door service from the government through a proposed SEZ Authority. Similarly, the Bill has proposed many incentives for exporting industries of priority sector.
The Bill states that any business transaction from industries in SEZ will be differently treated in tax, fees and any other charges on production. The industries can enjoy 50, 40 and 25 percent discounts on land leasing amount in first, second and third year of its establishment, respectively.
The Bill has provisioned that the incentives cannot be curtailed regardless of what is written in other laws. Infrastructure project developers and industries setting up industrial units in SEZ will enjoy 100 percent income tax waiver for the first five years. The industries using at least 60 percent domestic raw materials will enjoy 50 percent income tax waiver for next ten years. Other industries can enjoy income tax waiver for first five years. However, industries opened in SEZ in mountainous or specified hilly districts will be offered 50 percent income tax waiver for ten years in addition to 100 percent income tax for the first decade.
Bhairahawa SEZ is spread over 52 bigha of land in Bagaha VDC adjoining Sidhharthanagar Municipality. There are 68 plots with areas ranging from 2,000 to 4,000 square meters. Government expects Bhairahawa SEZ will draw total investment of Rs 10 billion.
Meanwhile, the government has already started the process to establish two SEZs in Panchkhal of Kavre and Simara of Bara.
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