Value-added tax (VAT) exemptions in free and special economic zones were designed with the aim of supporting production, employment, and exports; however, evidence indicates that this policy has fallen short of its objectives and has practically led to the expansion of non-productive activities, intermediation, and tax evasion. Weak oversight and a lack of structured development plans have led to the formation of shell companies, covert activities in the mainland, regulatory evasion, and even the potential for money laundering, transforming free zones from "export platforms" into "import hubs." According to official statistics, imports in these zones during 2017 and 2018 were several times greater than exports, with the bulk of imports consisting of consumer goods. Theoretically, VAT is inherently a consumption tax, and eliminating its exemption does not necessarily harm production and exports, given that exports nationwide are subject to a zero rate, and taxes on production machinery are refundable or compensable. Nevertheless, the incomplete implementation of registration systems and invoicing mechanisms causes taxes to ultimately burden small-scale operators and producers. Corrective strategies include limiting, conditionalizing, and targeting exemptions, clarifying the list and criteria of tax exemptions, reforming the VAT implementation mechanism to ensure it burdens the final consumer, and conducting a scientific review of the rationale behind the establishment and development of free and special zones.