The Indian government has brought great news for people who shop from abroad or travel frequently. In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman announced a big reduction in customs duty on goods imported for personal use. The tax has been cut by half, bringing immediate relief to many common citizens who bring items from foreign trips or order them online.
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How much tax will you pay now?
Previously, the customs duty on personal items was set at 20%. Now, the government has slashed this rate to 10%. This means if you buy something from another country for personal use, you will pay much less tax to the authorities. These new rates are effective immediately from February 2, 2026. This change is part of the new Baggage Rules, 2026, aimed at making things more affordable for travelers and individuals.
Relief for patients and manufacturing sector
Apart from personal goods, the government has removed customs duty on several important items to help the common man and industries. This includes life-saving medicines and parts for making various machines in India.
- Cancer Treatment: 17 essential drugs used for cancer treatment are now completely duty-free.
- Solar & Energy: Tax on minerals for solar glass and nuclear power has been removed.
- Batteries: Machinery for making lithium-ion batteries will now have zero import tax.
- Aviation: Aircraft parts, engines, and repair items will not attract any customs duty.
- Kitchen: Materials required for making microwave ovens are now tax-free.