New Delhi: Finance Minister Nirmala Sitharaman concluded her Budget 2026-27 speech in the Lok Sabha on Sunday after around one and a half hours. In her ninth consecutive budget, she outlined measures to simplify customs and excise duties and boost domestic manufacturing in the Union Budget 2026-27.
Custom Duty to Boost Exports
As part of sector-specific measures to promote exports of marine, leather and textile products, the Finance Minister proposed to raise the limit for duty-free imports of specified inputs used for processing seafood for export from 1% to 3% of the FOB value of the previous year’s export turnover.
FM Sitharaman proposed extending the basic customs duty (BCD) exemption available on capital goods used for manufacturing lithium-ion cells for batteries to those used for battery energy storage systems as well. She also announced a BCD exemption on the import of sodium antimonate for use in the manufacture of solar glass.
States to Transfer Funds
The government announced that it will maintain a 41% share for states in the transfer of funds, following the recommendations of the 16th Finance Commission.
For the financial year 2026-27, the Central Government has allocated ₹14 lakh crore to the states, ensuring resources for development and welfare initiatives across the country.
Lower TCS Rates
On direct taxes, FM Sitharaman proposed easing compliance for taxpayers under the Union Budget 2026-27. In Nirmala Sitharaman Budget Speech, she announced reducing TCS on sale of overseas tour packages from 5% and 20% to 2%, with no minimum amount stipulation.
She added that TCS for remittances for education and medical purposes under the Liberalised Remittance Scheme will be reduced from 5% to 2%.
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