Budget 2026-27 reworks import duties: Major relief for health sector

NEW DELHI, Feb 2: As many as 17 cancer drugs, along with medicines and food for special medical needs for seven rare diseases, and components for microwave ovens are some of the items that are set to become cheaper with Finance Minister Nirmala Sitharaman announcing cuts in customs duty in the Union Budget 2026-27.

However, certain items like imported low-cost umbrellas, ATMs/cash dispensers, coffee roasting, brewing or vending machines are some of the items, which are going to be costlier due to increase in basic customs duties.

In her speech, Sitharaman said, "To provide relief to patients, particularly those suffering from cancer, I propose to exempt basic customs duty on 17 drugs or medicines."

"I also propose to add seven more rare diseases for the purposes of exempting import duties on personal imports of drugs, medicines and Food for Special Medical Purposes (FSMP) used in their treatment," she said.

The Finance Minister also proposed to exempt basic customs duty (BCD) on specified parts used in the manufacture of microwave ovens. This will "deepen value addition" in the consumer electronics sector, she said.

She also proposed to exempt basic customs duty on import of sodium antimonate for use in manufacture of solar glass.

The finance minister also announced extension of existing basic customs duty exemption on imports of goods required for Nuclear Power

Projects till 2035 and expand it for all nuclear plants irrespective of their capacity. Besides, she also "proposed to provide basic customs duty exemption to the import of capital goods required for processing of critical minerals" in the country.

To encourage the aviation industry, both civil and defence, the government exempted BCD on components and parts required for the manufacture of civilian, training and other aircrafts.

The minister also announced to exempt BCD "on raw materials imported for manufacture of parts of air-craft to be used in maintenance, repair, or overhaul requirements by units" in the defence sector.

However, the minister also announced extending the ambit of BCD on import of cheap umbrellas by putting a minimum duty of Rs 60. Now it will attract a BCD of "20 percent or Rs 60 per piece, whichever is higher".

Moreover, the Budget also announced lapse of a notification issued last year in October, exempting BCD on ATM/cash dispensers and its parts and components. Concession on television equipment, cameras and other equipment imported by a foreign film unit or television team for shooting here will also lapse from April 1, 2026.

Interestingly, import of zoo animals and birds, which was attracting nil BCD, will now be brought under a tax net of 30 percent. Moreover, concessional BCD rates on coffee roasting, brewing or vending machines will also lapse from February 2, 2026.

-PTI