Union Budget 2026-27: Tariffs remain high and revenue share falls

  Challenges

 

> Share of Customs duty collections declined in central tax receipts despite the government resorting to raising tariffs

 

> The US decision to levy unprecedented tariffs has thrown the global trade in a tailspin

 

Takeaways

 

> The Budget reduces Customs duty on the imports of capital goods for manufacturing in different sectors, thereby correcting duty inversion

 

> The Budget reduces the tariff rate on all dutiable goods imported for personal use from 20 per cent to 10 per cent