Union Finance Minister Nirmala Sitharaman introduced key changes in basic customs duties during the Budget 2025-26, impacting various goods. The budget includes duty exemptions on essential medicines, electronic goods, EV components, and mobile phone parts, making them more affordable. A significant relief is the full exemption of 36 life-saving drugs used in cancer and chronic disease treatment. An additional 37 medicines will be duty-free, improving access to essential medical treatment.
The government’s reductions in basic customs duties on electronic components will lower prices for electronics and technology products, including mobile phones benefiting from duty exemptions on battery components. Other items like headphones, headsets, microphones, and USB cables will also see cost reductions due to customs duty exemptions on production materials. The EV sector has been supported with duty exemptions on goods essential for battery manufacturing, along with waived duties on key minerals needed for EVs, mobile phones, and other high-tech devices.
The leather industry benefits from the exemption of basic customs duty on wet blue leather, reducing costs for manufacturers. This cost reduction will make products such as jackets, shoes, belts, and purses more affordable. Additionally, duty exemptions on raw materials for shipbuilding are extended for 10 years. Marine products like fish pasteurii will be cheaper with the customs duty reduced to 5 per cent. Fish hydrolysate for aquatic feed will now have a 5 per cent duty instead of 15 per cent. The budget also aims to boost handicraft exports globally. Furthermore, customs duty on carrier-grade Ethernet switches is lowered to 10 per cent to support the domestic technology sector.
Certain goods will now cost more, such as knitted fabrics facing a higher 20% customs duty or Rs 115 per kg. The duty on flat-panel TV displays has doubled to 20%, likely leading to increased TV prices. This change seeks to fix the duty structure and promote local TV component manufacturing. Motorcycles under 1,600 cc will see a reduced customs duty of 40%, down from 50%.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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