BUDGET
To allow sales from SEZ units into domestic mkt at concessional duty
This story was originally published at 19:17 IST on 1 February 2026
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--BUDGET: Concessional duty for SEZ mfg exports subject to ceiling of sales
MUMBAI – The government has proposed a special one-time measure 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. This would help address concerns about utilisation of capacities by manufacturing units in these areas due to global trade disruptions, Finance Minister Nirmala Sitharaman said while presenting the Union Budget for 2026-27 (Apr-Mar), in the Lok Sabha Sunday.
"I propose, as a special one-time measure, to facilitate sales by eligible manufacturing units in SEZs to the Domestic Tariff Area (DTA) at concessional rates of duty," Sitharaman said.
At present, manufacturing units in these special economic zones are allowed to sell their products in the domestic market on payment of duties on an output basis.
The quantity of such sales will be limited to a prescribed proportion of their exports. Sitharaman said that necessary regulatory changes will be undertaken to operationalise these measures while ensuring level-playing field for the units working in the domestic tariff area. End
Reported by Taniva Singha Roy
Edited by Deepshikha Bhardwaj
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