The Union Finance Minister (FM) Nirmala Sitharaman presented the Union Budget 2025-26 in the Lok Sabha today. The Budget is poised to bring about great reforms to the cargo screening and customs protocols to make them more understandable, user-friendly and comprehensive to effectuate global trade, promote exports and to uplift the manufacturing sector.
One of the major highlights proposed by the Finance Minister pertains to the elimination of seven additional tariff rates, following the seven that were removed in 2023-24. This move reduces the number of tariff rates to just eight, including the zero rate, making customs duties simpler and more predictable.
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Furthermore, the government aims to reduce the vices of double taxation, ensuring the inapplicability of no more than one cess or surcharge on any import, improving transparency, compliance and ease of doing business.
Addressing long-standing industry concerns, Sitharaman stated that duty inversion, which negatively impacts domestic manufacturers relying on imported raw materials, will be addressed through targeted reforms. Such inversion might facilitate the process of value addition within India itself, boost localized units, while creating a pathway to stay abreast of global markets.
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Quoting the Thirukkural on good governance, the Budget seeks to provide much relief to the users of life-saving medication, proposing restructuring of customs duties on cancer medications, making them more affordable.
In a further push towards public welfare, six additional life-saving medicines have been added to the list eligible for concessional customs duty or full duty exemptions. Moreover, basic customs duty exemptions will be granted when these medicines are provided free of cost to patients, significantly reducing their financial burden.
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The major overhaul proposed by the Budget 2025-26 is deemed to bring a 180 Degree in many sectors, with the Government treading carefully and calculatingly to bring forth a stable and productive economy in India.
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