Mumbai, Dec 08 : The Centre is reportedly planning to reduce the number of customs duty slabs to five or six as part of its effort to simplify India’s tariff framework. The move follows major rationalisation in the previous budget and aims to streamline duties, cut classification disputes, and align customs with national economic priorities.
A senior official told The Economic Times that despite earlier reforms, further rationalisation is possible, and an announcement is expected in the upcoming 2026 budget. The Central Board of Indirect Taxes and Customs (CBIC) is spearheading the initiative, focusing on harmonising customs duties with the revised Goods and Services Tax (GST) system to create a more unified indirect tax regime and ease compliance for businesses operating under both frameworks.
The government is also considering redefining duty structures between Special Economic Zones (SEZs) and Domestic Tariff Areas (DTAs) as part of broader SEZ reforms. Simplifying the framework is expected to reduce litigation, with over 75,000 customs cases pending as of December 2024 and arrears totaling Rs 24,016.20 crore. Industry groups have urged an amnesty scheme for non-wilful violations to further lower disputes.
Finance Minister Nirmala Sitharaman has reiterated that rationalising the customs duty structure remains a key priority in the government’s ongoing economic reform agenda.