Union Budget 2024-25 likely to relax compliance with Customs rules

Budget may introduce electronic bank guarantee to curb tax leakage

The Centre might propose a raft of changes in the Customs rules to weed out duty anomalies, retain certain exemptions, and improve compliance in the upcoming Union Budget.

According to two officials privy to the discussion, some crucial measures concerning Customs have been deliberated on to boost domestic manufacturing, ensure hassle-free and appropriate compliance, and curb tax leakages.
 

Official sources indicate that the Centre is planning to introduce electronic bank guarantees (BGs) for importers to plug revenue leakage. Retaining duty exemptions on some items and tweaking Customs duty rates, particularly on medical equipment and consumer electronics to boost the domestic