In a major relief for the common people, the government has announced a big reduction in customs duty on goods imported for personal use. Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on February 1, 2026, where she declared that the tax on personal items has been cut by half. Previously, people had to pay 20% duty on these items, but now they will only have to pay 10%. This new rule is set to come into effect from February 2, 2026.
How Will This Benefit Common People?
This decision is expected to help travelers and individuals who buy things online from other countries. With the duty reduced from 20% to 10%, many imported items used for personal needs will become cheaper. The government has made these changes under the new Baggage Rules, 2026. This move is part of a plan to make the tax structure simpler and more beneficial for the public.
List of Other Items That Became Cheaper
Apart from personal goods, the government has also removed or reduced customs duty on several other important items. This step is taken to support sectors like healthcare, energy, and manufacturing. Many essential items now have zero import duty.
| Sector | Item Details | New Duty Status |
|---|---|---|
| Healthcare | 17 drugs used for cancer treatment | Exempted (0%) |
| Energy | Monazite (Rare-earth mineral) | Reduced to 0% from 2.5% |
| Solar Power | Sodium antimonate for solar glass | Reduced to 0% from 7.5% |
| Nuclear Power | Essential items for power generation | Reduced to 0% from 7.5% |
| Manufacturing | Goods for making Lithium-ion cells | Exempted (0%) |
| Consumer Goods | Materials for Microwave ovens | Exempted (0%) |
| Aviation | Aircraft parts and engines | Exempted (0%) |
These changes are aimed at boosting domestic manufacturing and making critical treatments and energy sources more affordable for everyone.
