The Budget proposed a set of tax and duty changes aimed at easing compliance for consumers, lowering customs duty and rationalising remittance taxes.
The Budget proposes reducing customs duty on all dutiable goods imported for personal use, including gifts, to 10% from 20%, offering modest relief to consumers on high-value personal imports.
The Budget will also revise the list of duty-free allowances, and provide clarity to bring a new laptop along with personal effects.
Cheaper Overseas Travel
Overseas travel is also set to become less tax-heavy. Tax collected at source (TCS) on overseas tour packages will be reduced to a flat 2%, from the earlier two-tier structure of 5% (up to Rs 10 lakh) and 20% (above Rs 10 lakh).
Moreover, TCS on remittances under the Liberalised Remittance Scheme (LRS) for education and medical treatment has been reduced from 5% to 2%, offering relief to families sending funds abroad for essential expenses.
Healthcare Customs Exemptions
In healthcare, the government has proposed to exempt basic customs duty on 17 drugs and medicines, particularly those used in cancer treatment. The Budget also proposes to add seven more rare diseases to the list eligible for duty-free personal imports of drugs, medicines and food for special medical purposes used in their treatment.
Customs duty has been exempted on critical and cost-intensive components used in microwave oven manufacturing, potentially lowering consumer prices. Electric vehicles may also see price benefits over time with nil duty on monazite, a key raw material for permanent magnets used in EV motors, and on capital goods for lithium-ion battery manufacturing.