​Indirect Tax

Rationalisation of Customs Tariff Structure for Industrial Goods

Union Budget 2025-26 proposes to:

  1. Remove seven tariff rates. This is over and above the seven tariff rates removed in 2023-24 budget. After this, there will be only eight remaining tariff rates including ‘zero’ rate.
  2. Apply appropriate cess to broadly maintain effective duty incidence except on a few items, where such incidence will reduce marginally.
  3. Levy not more than one cess or surcharge. Therefore Social Welfare Surcharge on 82 tariff lines that are subject to a cess, exempted.

Revenue of about Rs 2600 crore in indirect taxes will be forgone.

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Budget 2025-26