IN
tariff
Effective 2025-04-01India Union Budget 2025-26 rationalises customs duties
Budget 2025-26 reduces the number of customs tariff rate slabs from 15 to 8 and revises rates on 8,500 HS lines. Notable cuts: lithium-ion batteries (from 15% to 10%), critical minerals (most to 0%), display assembly parts (from 15% to 10%).
Finance Minister Nirmala Sitharaman announced sweeping customs rate rationalisation in Budget 2025-26:
- BCD slabs reduced from 15 to 8 (0%, 2.5%, 5%, 7.5%, 10%, 15%, 20%, 25%+)
- Social Welfare Surcharge of 10% on BCD continues
- Critical minerals, ship-building components, MRO parts: most BCD cut to 0%
- Lithium-ion battery (HS 8507.60): 10% (was 15%)
- Display panel assembly inputs (HS 8517.79): 10% (was 15%)
- Cancer drugs and certain medical equipment: 0% (was 5-7.5%)
- AIDC Agriculture Infrastructure Development Cess re-balanced
Net effective rate on most consumer electronics imports rises slightly due to higher base BCD on finished goods despite cuts on inputs.