The Lok Sabha on Tuesday (March 25) passed the Finance Bill 2025, incorporating 35 government amendments aimed at tariff rationalisation and boosting domestic manufacturing. Finance Minister Nirmala Sitharaman, while discussing the bill, highlighted key changes designed to enhance ease of doing business and support India’s economic growth.
A major focus of the amendments is customs duty rationalisation, with the government removing seven customs tariff rates to address duty inversion and reduce input costs. The bill also ensures that imports will now be subject to either a cess or a surcharge, but not both, preventing double taxation.
To further encourage domestic manufacturing, the government has exempted customs duties on 35 additional capital goods used in electric vehicle (EV) battery production and 28 capital goods related to mobile manufacturing.
Additionally, the bill introduces amendments to the simplified safe harbour regime for investment funds, providing greater clarity and regulatory ease.
Sitharaman emphasised that these reforms align India’s trade and investment policies with global standards while ensuring fair taxation and fostering domestic industry growth. The Finance Bill 2025 now moves to the Rajya Sabha for approval.