<h1>SEZs Offer Tax Benefits: Duty-Free Imports, Income Tax Exemptions, External Borrowing, and Service Tax Relief for Developers and Units.</h1> Special Economic Zones (SEZs) in the country receive various tax benefits and facilities. These include duty-free import and domestic procurement of goods, 100% income tax exemption on export income for the first five years, and reduced rates thereafter. SEZ units are also exempt from minimum alternate tax and can borrow up to $500 million externally without maturity restrictions. Developers receive customs and excise duty exemptions, income tax exemptions for SEZ development, and exemptions from minimum alternate and dividend distribution taxes. Service tax benefits include exemptions for services within SEZs and refunds for services used by SEZs but provided externally.