
In the Union Budget 2025-26, the government has announced the removal of seven tariff rates for industrial goods, building on the seven tariff rate eliminations from the 2023-24 Budget. This move aims to streamline the customs tariff structure, reducing complexities for businesses engaged in industrial goods imports and exports.
To maintain the overall duty incidence, the government will apply appropriate cess on select items. However, the broader objective is to ensure that effective duty rates remain stable across most goods, minimizing disruptions in industrial supply chains.
Additionally, the budget provides relief through the exemption of Social Welfare Surcharge on 82 tariff lines that are already subject to a cess. This measure is expected to ease costs for industries and promote greater efficiency in the import of critical industrial goods.