SEZ Duty Relief: Industry vs. Govt on 'Made in India' Tax Debate

• Industry demands easing customs duties on SEZ goods sold domestically, citing "Make in India" and FTA relevance.
• Current rules tax SEZ goods sold into Domestic Tariff Area (DTA) at full import duties, creating competitive imbalance.
• Anurag Sehgal (Price Waterhouse & Co LLP) suggests duty only on imported inputs, aligning with proposed DESH Bill.
• Former CBIC chairman Najib Shah opposes, arguing SEZs are export-focused and duty relief would distort tariff parity.
• The debate highlights a policy dilemma for Union Budget 2026: evolve SEZs or maintain export focus and protect domestic industry.

Why It Matters: Ahead of Budget 2026, India faces a critical choice on SEZ policy: support domestic sales or preserve export focus.