Budget 2025-26 Proposes Removal of 7 Customs Tariff Rates for Industrial Goods

Last updated: 01 February 2025

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The Union Budget 2025-26 aims to rationalise customs tariffs by removing seven tariff rates for industrial goods, reducing the total to just eight. This move, building on previous reductions, is part of a broader strategy to support domestic manufacturing, promote exports, and facilitate trade. The budget also introduces exemptions and duty reductions on essential medicines, capital goods for EV and mobile battery manufacturing, and critical minerals, while also simplifying trade processes and promoting voluntary compliance.

UNION BUDGET 2025-26 PROPOSES TO REMOVE SEVEN CUSTOMS TARIFF RATES FOR INDUSTRIAL GOODS EXEMPTION TO 36 MORE LIFE SAVING MEDICINES FOR CANCER AND OTHER RARE DISEASES FROM BASIC CUSTOMS DUTYBOOST TO E-MOBILITY: 35 ADDITIONAL CAPITAL GOODS FOR EV BATTERY MANUFACTURING EXEMPTED FROM BCDPROPOSALS TO SUPPORT DOMESTIC MANUFACTURING AND VALUE ADDITION WHILE PROMOTING EXPORTS, FACILITATING TRADE AND PROVIDING RELIEF TO COMMON PEOPLE The Union Budget 2025-26 presented by Union Minister for Finance an

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FAQ :

The Union Budget 2025-26 proposes to remove seven customs tariff rates for industrial goods.

After the removal of seven tariff rates, there will be only eight tariff rates remaining, including the zero rate.

Yes, 36 life-saving drugs for cancer and rare diseases will be fully exempted from Basic Customs Duty, and 6 more will attract a concessional duty of 5%.

The budget proposes to exempt 35 additional capital goods for EV battery manufacturing from Basic Customs Duty (BCD) and fully exempt BCD on cobalt powder and lithium-ion battery scrap.

The budget proposes to fix a time limit for finalizing provisional assessments, allow voluntary declarations of material facts without penalty in certain cases, and extend the time limit for the end-use of imported inputs.

Yes, the time period for export of handicrafts is extended, duty-free inputs for handicrafts are increased, and export duty on crust leather is exempted to facilitate exports.

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