Union Finance Minister Nirmala Sitharaman on Sunday set out changes to customs duties and import tariffs for the 2026–27 financial year, with revisions that make some goods cheaper while pushing up costs for others.
“My proposals for Customs and Central Excise seek to simplify the tariff structure, support domestic manufacturing, promote export competitiveness, and correct inversion in duty,” Sitharaman said during her Budget speech in Parliament.
From overseas travel to umbrellas, here is a clear look at what becomes cheaper and what costs more after the Budget.
What got cheaper in Budget 2026–27 full list
Essential drugs
To ease access to treatment, particularly for cancer patients, the Finance Minister announced a basic customs duty exemption on 17 drugs and medicines. Seven rare diseases were also added to the list for exemption from import duties on personal imports of drugs, medicines and food for special medical purposes used in treatment.
Overseas tourism packages
Tax collected at source on overseas tour programme packages was cut to a flat 2 per cent. Earlier, TCS was charged at 5 per cent on amounts up to ₹10 lakh and 20 per cent on amounts above that threshold. The change applies to travel, hotel stays, boarding, lodging and similar expenses.
Foreign education and medical treatment
TCS under the Liberalised Remittance Scheme for education and medical purposes abroad was reduced from 5 per cent to 2 per cent, lowering the upfront tax outgo for families sending money overseas.
Imported goods for personal use
Customs duty on all dutiable goods imported for personal use was reduced from 20 per cent to 10 per cent as part of a broader rationalisation of tariff rates.
Seafood processing inputs
The duty-free import limit for specified inputs used in seafood processing for export was raised from 1 per cent to 3 per cent of the free on board value of the previous year’s export turnover.
Leather and synthetic footwear inputs
“I also propose to allow duty-free imports of specified inputs, which is currently available for exports of leather or synthetic footwear, to exports of shoe uppers as well,” Sitharaman said.
Biogas-blended CNG
The entire value of biogas will be excluded while calculating central excise duty on biogas-blended compressed natural gas, reducing the duty burden on such fuels.
Tendu leaves
Tax collected at source on the sale of tendu leaves was cut from 5 per cent to 2 per cent.
Capital goods for critical minerals
Capital goods needed for processing critical minerals in India were given a basic customs duty exemption.
Aircraft parts and raw materials
Basic customs duty was removed on components and parts used in the manufacture of civilian, training and other aircraft.
Raw materials imported for manufacturing aircraft parts used for maintenance, repair and overhaul by defence sector units were also exempted.
Microwave oven parts
“To deepen value addition in the consumer electronics sector,” the Finance Minister announced a basic customs duty exemption on specified parts used to manufacture microwave ovens.
Lithium-ion cells for energy storage
The basic customs duty exemption for capital goods used to manufacture lithium-ion cells was extended to cover equipment used for battery energy storage systems.
What got more expensive in Budget 2026–27
Alcohol
TCS on the sale of liquor for human consumption was raised from 1 per cent to 2 per cent. The higher rate also applies to scrap and minerals.
Items with negligible imports
“To continue weeding out long continuing customs duty exemptions, I propose to remove certain exemptions on items which are being manufactured in India or where the imports are negligible,” Sitharaman said.
Futures and options trading
The securities transaction tax on futures was increased to 0.05 per cent from 0.02 per cent. For options, STT was raised to 0.15 per cent from 0.1 per cent.
Umbrellas and their parts
Customs duty on umbrellas, excluding garden umbrellas, was set at 20 per cent or ₹60 per piece, whichever is higher. Duty on umbrella parts, trimmings and accessories was increased to 10 per cent or ₹25 per kg, whichever is higher, from a flat 10 per cent earlier.
 "Budget 2026 highlights: From liquor to travel, what got cheaper, costlier")
