Govt. drops import duty on EV, phone battery components, Pg 1 & 10

Key Highlights

Customs Duty Rationalisation

• No import duties on 35 capital goods for EV batteries and 28 items for mobile battery manufacturing.

• Part of Budget 2025 s Customs reforms to reduce raw material costs and enhance competitiveness.

Boost to Domestic Production

• Aims to support domestic value addition, manufacturing units, and promote exports.

• Emphasis on making Indian products cost-effective and reducing dependence on imports.

Finance Bill Amendments

• Govt. moved 35 amendments including removal of 6% digital ad tax.

• Customs rationalisation ongoing for past 2 years as per FM.

Income Tax Reforms & Nudge Campaign

• New Income Tax Bill, replacing the 1961 Act, under review by a Select Committee.

• Govt ran a  nudge campaign: ~19,500 taxpayers nudged via SMS/email led to ¹ 29,208 crore of declared foreign assets and ¹ 1,089 crore in foreign income.

Projected Revenue & Relief

• Revised estimates for 2024-25: ¹ 12.2 lakh crore.

• Income tax target for 2025-26: ¹ 13.6 lakh crore.

• Assured ** marginal relief ** to taxpayers above ¹ 12 lakh threshold.

Analysis & Way Forward

• A strategic move to align India s industrial and export growth with green tech transition.

• Way forward: Complement with PLI schemes, simplify GST, and ease regulatory compliance for manufacturing.

Mains Mock Question:

"Evaluate the impact of customs tariff rationalisation on India s manufacturing and export sectors. How can it contribute to the electric mobility and electronics ecosystem?"