- The Union Budget 2026-27 is expected to significantly reduce Customs duties and simplify tariff structures, moving India toward a low-tariff regime.
- Ongoing and upcoming free trade agreements (FTAs) will further expand preferential trade routes, making MFN tariffs less relevant.
- Customs revenue now forms less than 4% of total budget receipts, giving scope for large-scale duty reductions.
- Industry experts anticipate reforms to reduce compliance burdens, increase digitisation, and focus on targeted rate cuts for industrial inputs.
- Think tanks recommend a phased move to zero duties on most raw materials and a low, uniform rate on finished goods, along with further reduction in the number of duty slabs.
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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