So far as Indian SEZ and business policy is concerned U 'll be taken aback to see that the corporate lobby is so strong that most of the front running business organisations both at home and from abroad(MNC) have been granted colossal exemptions to evade tax, and exploit the average customers...For example take the case of WOODLANDS SHOES ... itz market price on the average ranges from 2200 - 4500 per pair....but U 'll be astonished to see that it pays excise duty on its manufacturing cost....which is at best Rs. 500/- to 550/-, bcz of the deliberate faulty business agreement....WOODLANDS CORPORATION being an MNC evades to pay tax on its product within India ....but it exploits its citizen by selling the same shoes at 5 times & 6 times of its Manufacturing cost....If U 'll calculate the advertisement, C/F, and distribution overheads it must not go more than 25% of its manufacturing cost per unit....but it cheats the Indian Consolidated fund....and this is due to corporate Lobby ... how
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I do not know whether they really take taxes or not.. But chinese business techniques are not according to world trade organisation's rugulations.. They have frequently violated them by exporting material at lower cost than production cost, to get foreign currency. They have a closed economy and autocratic government. They save expenses on elections, and contracts. They kill demonstrations, and no one can raise their voice against welfare facilities. They do not need much money for governance too. You cannot compare both economies as there are no similarities.
We need industries to grow in undeveloped areas.. Govt has no money. So they declare attractive package for private industries... This might be the reason for no tax zone. If we stop the package, industries wont go there.