Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on February 1, 2026. The central government has introduced major changes in customs duties and tax structures. Most of these changes have already come into effect from February 2, 2026. This year, the budget brings significant relief to patients and gadget lovers, while smokers and importers of luxury goods will have to pay more.
List of Items That Have Become Cheaper
The government has focused on reducing costs for healthcare and domestic manufacturing. Customs duty on 17 life-saving cancer drugs has been completely removed. Mobile phone manufacturing components and microwave oven parts will also attract lower taxes now. Even goods imported for personal use will see a lower tariff of 10% instead of 20%. Here is the detailed list of cheaper items:
| Category | Item Details |
|---|---|
| Medicines | 17 Cancer drugs, Medicines for rare diseases |
| Electronics | Mobile phone parts (PCBA, connectors), Microwave oven parts |
| Personal Use | Duty on personal imports halved to 10% |
| Green Energy | Solar glass material, EV battery machinery |
| Sports | Professional sports equipment |
| Aviation | Aircraft parts and testing equipment |
| Industrial | Critical minerals machinery, Leather inputs |
Items That Will Cost You More Money
While the budget offered relief in many sectors, certain items have witnessed a price hike to discourage harmful habits or promote local goods. The tax on cigarettes and gutkha has been raised sharply. If you are planning to buy imported umbrellas or high-end coffee machines, you will have to spend more money now. The commercial LPG cylinder price has also increased by ₹49.
- Tobacco Products: Cigarettes and Gutkha duties raised to 60%.
- Luxury Items: Imported umbrellas, luxury watches, and premium alcohol.
- Business Machinery: ATM machines, cash dispensers, and coffee brewing machines.
- Trading: Securities Transaction Tax (STT) on F&O trading has been hiked.
- Chemicals: Fertilizer inputs like Ammonium Phosphate.
