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Informist, Thursday, Apr. 2, 2026

 

--Govt source: To lose INR-18-bln revenue for 3 mos on duty relief to SEZ cos

 

NEW DELHI - The government is likely to lose around INR 18 billion over three months owing to the one-time relief of allowing eligible manufacturing units in special economic zones to sell goods in the domestic tariff area, or the domestic market, at concessional rates of duty, a senior finance ministry official said Thursday. This implies that the government may lose around INR 72 billion in 2026-27 (Apr-Mar), the entire period during which the scheme will be in place.

 

The special window was rolled out on Wednesday to address concerns arising from global trade disruptions. "This is an one-time, targeted, short-term measure to address the trade related uncertainties," the official said. 

 

This relief was first announced by Finance Minister Nirmala Sitharaman in the Budget for FY27. It would help address concerns about utilisation of capacities by manufacturing units in these areas due to global trade disruptions, Sitharaman had said in her speech. The relief, however, excludes some sensitive sectors to safeguard the domestic industry. Agricultural products is one of those sensitive categories, the official said.

 

According to norms, manufacturing units in special economic zones can claim benefits under this relief window only in case of value addition of a minimum 20% over the inputs. The emphasis on exports by these units will remain, and sales in the domestic market at concessional rates will not be more than 30% of the highest annual value of exports in any of the three immediately preceding financial years.  End 

 

Reported by Priyasmita Dutta 

Edited by Avishek Dutta

 

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