The Rajya Sabha on Thursday returned the Finance Bill 2025 to the Lok Sabha, including amendments such as the one that abolishes a 6% digital tax on online advertisements, thereby completing the Budget exercise.
Replying to a debate on the Bill, finance minister Nirmala Sitharaman emphasised that the rationalisation of customs duty and the withdrawal of certain levies were initiated much before US President Donald Trump assumed office and were part of ongoing policy measures. The 6% levy was imposed in 2016. A similar 2% levy imposed in 2020 was removed in July 2024 to ease compliance burdens.
These actions are not in response to President Trump’s tariff war but are part of broader policy adjustments, the minister said, adding that it’s part of the government’s continued efforts to revise customs levies.
The Lok Sabha passed the Finance Bill on March 25 and passed the Appropriation Bill on March 21.
Sitharaman said the tendency of the finance ministry would be to exercise caution and not let go of revenues.
“But here we wanted to use this opportunity to show our respect for Indian taxpayer. We have moved towards setting Rs 12 lakh as threshold up to which no one will have to pay any tax,” Sitharaman said.
The Union Budget 2025-26 envisages a total expenditure of Rs 50.65 lakh crore, an increase of 7.4% over the current fiscal.
The total capital expenditure proposed for the next fiscal is Rs 11.22 lakh crore and an effective capital expenditure of Rs 15.48 lakh crore.
It proposes a gross tax revenue collection of Rs 42.70 lakh crore and a gross borrowing of Rs 14.01 lakh crore.
