During the Union Budget 2025-26, the Finance Minister, Nirmala Sitharaman, stated that the Union will not levy more than one cess or surcharge. This was stated while addressing indirect tax reforms.
The Union budget aims at the rationalization of the customs tariff structures for industrial goods. It was announced that not more than one cess or surcharge will be imposed on goods. This proposal is part of the government’s broader efforts to streamline the tax regime and reduce compliance burdens for businesses and consumers alike.
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Interestingly, the government plans to remove seven additional tariff rates, building on the seven rates eliminated in the 2023-24 budget. Post this rationalization, only eight tariff rates, including the ‘zero’ rate, will remain in place.
The Social Welfare Surcharge ( SWS ) on 82 tariff lines subject to a cess has been exempted. This decision aligns with the government’s commitment to levy only one cess or surcharge, thereby reducing the cumulative tax burden on goods. The exemption is expected to benefit sectors reliant on these tariff lines.
The simplification of the customs tariff structure and the cap on cess and surcharge are expected to boost investor confidence and support the government’s vision of achieving sustainable economic growth.
This is the eighth time the FM has presented her budget, which is indeed a record for Indian FM. It is a much-highlighted fact that flexibility in policymaking is the need of the hour. Taxation has been seen as the main focus of the 2025 budget landscape.
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According to the FM, with the first quarter of the 21st century getting over, the Viksit Bhart, scheme is marching forward confidently. In order to enhance the growth of Viksit Bharat, the FM has proposed to focus on 6 sectors, with taxation given due importance.
[BREAKING] No Income Tax up to Rs. 12 Lakh Income, proposes FM during Budget 2025
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