Nagpur: The Association of Industrial Development (AID) has urged the Central Government to expedite the proposed amendments to the Special Economic Zone (SEZ) Act and Rules. Union Minister Nitin Gadkari has also recommended immediate action to Union Commerce and Industry Minister Piyush Goyal in this regard.
AID President Ashish Kale explained that currently, SEZ units enjoy tax exemptions on exports but are required to pay full customs duty and IGST on the entire value of finished goods sold in the Domestic Tariff Area (DTA). According to him, this heavy tax burden undermines the competitiveness of SEZ products in the Indian market.
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4 Oct 2025
The issue was recently discussed at a meeting of industry stakeholders chaired by Piyush Goyal. Under the proposed reform, tax on sales to the DTA would be levied only on imported raw materials, not on the entire finished product. AID believes this will encourage value addition, reduce production costs, improve competitiveness, and open opportunities for SEZ units in both domestic and export markets.
AID has appealed to the Ministries of Commerce, Industry, and Finance to prioritise and implement this long-pending reform. “Timely implementation will revitalise the SEZ sector, attract investments, generate employment, and boost industrial growth in Vidarbha and across the country,” Kale stated.
