Budget 2026-27 Highlights: Import Tariff Slashed to 10%, Duty-Free Cancer Medicines, and Faster Customs Clearances [Read Finance Bill 2026]

The Union Budget for the Financial Year 2026-27 was presented by Finance Minister Nirmala Sitharaman in the Lok Sabha today (Sunday, 1 February 2026).

Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026 -27 in Parliament, unveiled a series of measures aimed at simplifying the tariff structure, supporting domestic manufacturing, and boosting export competitiveness.

The union budget proposes that the tariff rate on all dutiable goods imported for personal use will be reduced from 20 % to 10 %, making imports more affordable .

Also, to provide relief to patients, particularly those battling cancer, basic customs duty will be exempted on 17 essential drugs and medicines. Additionally, exemptions will be extended to cover treatments for seven more rare diseases, including drug and food for special medical purposes(FSMP).

Another highlight in the budget 2026-27 is that customs processes are set to become more trust-based and streamlined. On the customs front, the Budget outlines several measures to streamline processes. The focus is on reducing intervention, ensuring faster and smoother movement of goods, and providing greater certainty for businesses engaged in trade.

The Budget proposes expanded duty‑free allowances, clearer baggage rules for travelers, and a new option for taxpayers to settle dues by paying an additional amount instead of penalties.

The duty deferral period for Tier 2 and Tier 3 Authorised Economic Operators (AEOs) will be extended from 15 days to 30 days, with similar benefits extended to manufacturer-importers.

Also the validity of advance rulings will be increased from three to five years, offering greater certainty to businesses. Trusted importers and exporters will face reduced cargo verification, while export consignments using electronic sealing will be cleared directly from factory premises to ships.

FM Nirmala Sitharaman further announced that the warehousing framework will also be modernized, shifting to an operator-centric model with self-declarations, electronic tracking, and risk-based audits. This reform aims to reduce reliance on officer approvals, cut transaction delays, and lower compliance costs.

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