New Delhi: As Union Finance Minister Nirmala Sitharaman on Sunday was presenting the Budget 2026-27, as eyes were on what gets cheaper and costlier for the consumers and businesses.
While, Nirmala Sitharaman presented her ninth budget consecutive Budget, the citizens were concerned about what items could pinch their pockets by getting costlier and what items will make them happy by getting cheap.
India’s GDP growth for FY27 is projected at 6.8 per cent to 7.2 per cent.
What gets cheaper?
- Essential cancer medicine: Cancer and diabetes medicines will be cheaper. Rs 10,000 crore have been kept for Biopharma Shakti Yojana. The Finance Minister on Sunday announced the exemption of basic customs duty on 17 cancer-related drugs and medicines.
- Seven rare diseases will be added to the list of diseases eligible for exemption from import duty on personal imports of drugs, medicines, and food intended for special medical purposes.
- Overseas tourism packages: Nirmala Sitharaman also proposed to reduce the TCS rate on the sale of overseas tour packages. The rate will be cut from the current 5 per cent and 20 per cent to 2 per cent.
- Foreign education: The Finance Minister during her speech also proposed to reduce the TCS (Tax Collected at Source) rate from current 5 per cent to 2 per cent for education and medical education under the Liberalised Remittance Scheme (LRS).
- Alcoholic liquor scrap and select minerals: Customs duty reduced from 5 per cent to 2 per cent.
- Leather goods: Duty-free imports of specific inputs currently available for exports of leather were announced by Finance Minister Nirmala Sitharaman during the budget. "I also propose to allow duty-free imports of specified inputs which is currently available for exports of leather or synthetic footwear to exports of shoe uppers as well," she said.
- Microwave ovens: Finance Minister announced exemption from the basic customs duty (BCD) on specified parts used in the microwave oven manufacturing..
- Energy transition equipment: Basic customs duty (BCD) exempt.
- Solar glass ingredients: The Finance Minister has proposed BCD exemption on Solar glass ingredients.
- Capital goods for critical minerals: Basic customs duty exempted.
- Components and parts for civilian aircraft manufacturing: Basic customs duty exempted.
- Personal-use imports: Basic customs duty cut from 20 per cent to 10 per cent.
- Fish catch by Indian fishermen in Indian waters: Basic customs duty exempted.
- Goods imported for nuclear power projects: Nirmala Sitharaman propose to exempt Basic customs duty.
What get costlier?
- Luxury goods: Luxury items such as watches and alcohol may get costlier.
- Income tax misreporting: Penalty has been raised to 100 per cent of the tax amount.
- Non-disclosure of movable assets: In case of non-disclosure of movable assets, person has to pay penalty.
- Stock options and futures trading: Securities Transaction Tax (STT) raised from 0.02 percent to 0.05 per cent.
