The Union Budget for 2026-27 was unveiled by Finance Minister Nirmala Sitharaman on Sunday, highlighting significant potential changes for consumers. Amid global economic uncertainties, the budget distinguishes between items that may become cheaper and those expected to rise in cost.
What Will Get Cheaper?
The government’s proposals aim to alleviate costs for various sectors, enhancing support for consumers and industries alike.
- Sports Equipment: A new initiative, the ‘Khelo India Mission’, aims to improve the sports sector. This includes enhancing employment and skills, which will, in turn, support the sports equipment market.
- Leather Goods: Duty-free imports of certain inputs for leather production have been announced, making these goods more affordable.
- Cancer Medicines: Duty exemptions on 17 cancer medicines have been proposed, expanding relief for patients battling various conditions.
- Seafood: Duty-free access for fish caught beyond territorial waters supports the fishing community.
- Microwave Ovens: Basic customs duties on specific components for manufacturing microwave ovens will be eliminated.
- Solar Panels: The budget extends duty exemptions on capital goods needed for lithium-ion battery cells and removes customs duties on imports of materials for solar glass production.
- Electric Vehicle (EV) Batteries: The waiver on import duties for machinery used in lithium-ion battery production continues, promoting domestic production.
- Personal Use Imports: Import duty on goods for personal use has been halved from 20% to 10%, easing costs for travelers.
- Travel Abroad: The tax collected at source (TCS) on overseas tour packages will decrease significantly from previous rates, reducing upfront costs for travelers.
- Education and Medical Treatment Expenses: TCS on funds sent abroad for educational and medical expenses under the Liberalized Remittance Scheme has also been cut to 2%, easing the financial burden on families.
What May Become Costlier?
While some items are set to become cheaper, other sectors may face increased costs due to taxation changes.
- Trading Activities: Proposed modifications to buyback taxation and the securities transaction tax (STT) may impact trading expenses.
- Corporate Cash Distribution: Changes in tax collected at source (TCS) for select goods point towards increased compliance costs for corporations, potentially elevating expenses.
The Union Budget 2026-27 seeks to support consumers by making strategic adjustments to duties and taxes. By targeting specific items for price reductions, the government aims to enhance economic stability amidst external pressures.
