Customs Reform to Be the Next Big Overhaul, Says FM
Customs Reform to Be the Next Big Overhaul, Says FM
As Budget 2026 nears, Finance Minister outlines sweeping customs simplification to boost transparency and ease compliance.
Ahead of Budget 2026, Finance Minister Nirmala Sitharaman signaled that customs simplification would be the next big reform on the government's agenda. She noted that this year's reforms included rate rationalisation and simplifications in income tax and GST to boost consumption by putting more cash in people's hands.
Speaking at the HT Leadership Summit, she stressed that customs needed a complete overhaul and should be transparent and easier to comply with. "There is a need to bring the virtues of income tax to the customs side in terms of transparency," she said, adding that the reforms would be comprehensive and include duty-rate rationalisation. "Customs is my next big cleaning-up assignment."
The plan is to unveil these proposals in Budget 2026, expected to be presented on February 1. She noted that the government had already reduced customs duties over the past two years and would lower rates further on items deemed to have rates above optimal levels.
The finance minister also addressed the macro backdrop, saying the rupee would find its natural level despite this year's 5% depreciation against the dollar and that the currency briefly breached the 90-per-dollar mark.
Earlier at the summit, Sitharaman held a separate pre-Budget meeting with startups for the first time, signaling a focus on fostering innovation and entrepreneurial activity as part of the reform push.
Cover image source: FM Nirmala Sitharaman explains how ‘tax terrorism’ was ended, reveals next step | HTLS 2025 🔗
