Union Budget 2026, presented on 1 February 2026 by Finance Minister Nirmala Sitharaman, introduced several changes affecting the prices of goods and services in India.
According to Financial Express, the tariff on all dutiable goods imported for personal use was reduced from 20 percent to 10 percent.
This measure is expected to lower the cost of high-value personal items purchased from overseas.
Additionally, microwave ovens, sports equipment, and certain electronics such as mobile phones, electric vehicle batteries, and solar panels are set to become more affordable due to exemptions on capital goods and critical inputs used in domestic manufacturing.
As reported by The Indian Express, the Tax Collected at Source (TCS) rate for overseas tour packages has been reduced to 2 percent, down from the previous rates of 5 percent and 20 percent.
The TCS on remittances for education and medical purposes under the Liberalised Remittance Scheme has also been lowered from 5 percent to 2 percent.
These changes are intended to ease the financial burden on individuals sending money abroad for education or medical treatment.
In the health sector, Deccan Herald highlighted that basic customs duty has been exempted for 17 drugs used in cancer treatment and for medicines treating seven additional rare diseases.
This exemption is expected to make these essential medicines more affordable for patients. Leather products and fish caught by Indian vessels in the exclusive economic zone are also set to become cheaper due to changes in import duties.
However, luxury goods such as watches and alcoholic drinks will face higher taxes, increasing their prices.
Industry analysis indicated that while immediate price reductions for smartphones may not occur due to global supply pressures, the budget’s focus on domestic manufacturing of smartphone components could help contain costs in the long term.
Retailers are advocating for a GST cut on entry-level phones to offset potential price increases, and the industry is seeking a reduction in Basic Customs Duty on critical components.
In the financial sector, the budget speech confirmed an increase in the Securities Transaction Tax (STT) on Futures and Options trading.
The STT on Futures was raised to 0.05 percent from 0.02 percent, and on options premium and exercise of options to 0.15 percent from 0.1 percent and 0.125 percent respectively.
This move is aimed at providing a “reasonable course correction” in the capital market and generating additional government revenue.
“Foreign travel and remitting money for education abroad [are] cheaper. At the same time, (the Finance Minister) hiked the tax on futures and option trading to ‘provide reasonable course correction’,” the budget speech noted.
Live coverage also detailed that no changes were made to income tax slabs, long-term capital gains tax, or standard deduction under the new tax regime. The government introduced a one-time six-month foreign asset disclosure scheme for small taxpayers, including students and NRIs, with immunity from prosecution for assets below specified thresholds.
In addition, further reporting clarified that the budget did not introduce new taxes or duties affecting digital services or technology platforms directly, but the focus remained on physical goods and financial transactions.
At the end of the list, additional details showed that items such as tobacco products, e-readers, CD-ROMs, digital cameras, video games, umbrellas, coffee machines, and adult diapers are set to become more expensive due to the withdrawal of duty exemptions or increased tariffs.
“Consumer electronics products imported for personal use will get cheaper. The tariff rate on all dutiable goods imported for personal use under Chapter heading 9804, has been reduced from 20 per cent to 10 per cent,” the budget summary stated.
Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.