Finance Minister Nirmala Sitharaman on Wednesday reaffirmed the government’s commitment to rationalising and simplifying customs duties, stating that the process has been ongoing since 2023 and will continue in line with the goals of Viksit Bharat and Atmanirbhar Bharat.
“We have been rationalising and simplifying customs duty since 2023. The customs tariff rationalisation announcements are keeping in mind the Viksit Bharat and Atmanirbhar Bharat requirements. Customs duty rationalisation is an ongoing process and will continue in future. It has nothing to do with today’s global situation,” Sitharaman said.
The minister also said that the Centre is adhering to its fiscal deficit targets. “We are meeting the glide path of the fiscal deficit, have brought out a clear strategy for 2025-26 as required by the FRBM Act. The Finance Bill continues with the government’s policy of tax certainty and ease of doing business,” she added.
Addressing concerns over the withdrawal of the equalisation levy, Sitharaman clarified that the decision was not linked to U.S. President Donald Trump’s tariff policies. “Withdrawing of equalisation levy is not a reaction to President Trump’s tariff wars. The 2 percent equalisation levy was withdrawn after stakeholder discussions in July 2024, which was before Trump took office. Removal of the 6 percent equalisation levy is a part of that process,” she said.
On cess collection and utilisation, Sitharaman highlighted that states are the ultimate beneficiaries. “Receipts of cesses are for meeting specific expenditure. The funds are being used for centrally sponsored schemes like MNREGA, food security, and mid-day meal schemes. Between 2019-20 and 2024-25, 105 percent of cess collected has been utilised by states. Out of Rs 15.4 lakh crore cess collection, Rs 15.96 lakh crore has been utilised by states,” she stated.
