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Budget 2026 Shake-Up: Cancer Drugs, Foreign Travel Get Cheaper; Luxury Goods Face Higher Taxes

Finance Minister Nirmala Sitharaman’s ninth Union Budget revamps customs duties—cutting costs on healthcare, education, and travel while increasing taxes on luxury items and tightening compliance rules 

01-02-2026
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In her historic ninth Budget presentation, Finance Minister Nirmala Sitharaman unveiled sweeping revisions to customs duties that will reshape prices for both everyday consumers and businesses. The government has removed import duties on 17 life-saving cancer medications and treatments for seven rare diseases, a move expected to significantly lower healthcare costs.

Several consumer-friendly measures were also announced. Taxes on overseas tour packages have been sharply reduced, bringing down travel expenses. Foreign education remittances under the Liberalised Remittance Scheme will now attract a lower TCS rate, easing financial pressure on students and families. Microwave ovens are also likely to become more affordable due to reduced duties on imported components. In addition, the leather industry will benefit from duty-free imports of select raw materials to boost domestic production.

Other sectors seeing cost relief include renewable energy and nuclear power, with exemptions on solar glass materials, clean energy equipment, and goods for nuclear projects.

At the same time, premium and discretionary goods will become more expensive. Higher duties have been imposed on luxury watches and alcoholic beverages. Financial compliance norms are also tightening—incorrect income reporting may now draw penalties equal to the unpaid tax, and undisclosed movable assets will attract fines. Additionally, Securities Transaction Tax on stock derivatives trading has been increased.

While the Budget avoids major income tax overhauls, it continues the government’s fiscal discipline strategy. A significant highlight is the expansion of public capital expenditure, now raised to ₹12.2 lakh crore for FY 2026–27, underscoring a continued push for infrastructure growth and economic modernization.

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