New Delhi, Feb 1: Finance Minister Nirmala Sitharaman on Sunday presented her record ninth Union Budget, with a sharp focus on economic growth, job creation and higher capital expenditure, while keeping income tax slabs unchanged.
The Budget brings relief on several essential items through customs duty cuts, making products such as cancer drugs and household appliances cheaper. At the same time, higher levies on select goods and services will push up prices of luxury items, imported liquor and derivatives trading.
Here’s a look at what becomes cheaper and costlier after Budget 2026:
Items set to become cheaper
Cancer drugs:
Basic Customs Duty (BCD) has been removed on 17 cancer-related drugs, significantly reducing the cost of life-saving oncology treatments.
Drugs for rare diseases:
Seven additional rare diseases have been brought under customs duty exemption. Personal imports of medicines, foods and therapies for these conditions will now be duty-free.
Foreign tourism packages:
Overseas travel is expected to become cheaper after the Tax Collected at Source (TCS) on foreign tour packages was reduced from five per cent to two per cent.
Foreign education:
Education abroad may cost less, with a lower TDS rate announced under the Liberalised Remittance Scheme (LRS) for education-related expenses.
Microwave ovens:
Basic Customs Duty on microwave ovens has been exempted, making them more affordable.
Shoe upper exports:
Exports of shoe uppers will now be duty-free, lowering costs for manufacturers and exporters.
Sports equipment:
With renewed emphasis on the Khelo India Mission, sports equipment is expected to become cheaper.
Aircraft components:
BCD has been exempted on components and parts required for manufacturing civilian, training and other aircraft, giving a boost to India’s aviation ecosystem.
Smartphones and tablets made in India are also expected to get cheaper.
Items likely to get costlier
Luxury goods:
Premium products such as high-end watches and imported alcoholic beverages will become more expensive due to higher duties.
Coffee machines:
The removal of duty exemptions on coffee roasting, brewing and vending machines is expected to push up prices of specialised coffee equipment.
Fertilisers:
Import fee exemptions on ammonium phosphate and ammonium nitro-phosphate have been withdrawn, likely increasing fertiliser costs.
Futures and options trading:
Derivatives trading will become more expensive following a hike in Securities Transaction Tax (STT).
STT on futures increased from 0.02% to 0.05%
STT on options increased from 0.1% to 0.15%
Income tax misreporting:
Penalties for misreporting income have been raised, with offenders now liable to pay a penalty equal to 100% of the tax amount.
