Budget 2022: Reforming SEZ Act to enhance competitiveness, says industry

The government will rewrite a new law to replace the existing SEZ Act as it seeks to enhance exports, FM Sitharaman said on Tuesday.

Reforming the 16-year old SEZ (Special Economic Zone) Act will boost exports, enhance competitiveness and remove anomalies in a sector that has been overlooked since the withdrawal of direct tax benefits, said officials at manufacturing firms and export promotion council. 

The legislation was framed under different circumstances and a lot has changed since then. Rules are complicated and there is also a need to make it World Trade Organisation (WTO) compatible, they said.

The government will rewrite a new law to replace the existing Special Economic zones (SEZ) Act as it seeks to enhance exports, finance minister Nirmala Sitharaman said