Taxpayers: After Income tax and GST, Major Changes in this! Finance Minister Hints Before Budget

Taxpayers: The Central Government is taking successive major steps to make the country’s tax system simpler and more convenient for the common man. Following multiple reforms in Income Tax and GST during the financial year 2025, the Modi government has now turned its focus towards the Customs Department. Recently, Finance Minister Nirmala Sitharaman hinted that radical changes might be introduced in Customs Duty and the operational procedures of the Customs Department in the coming days. This news is extremely significant for both businesses and ordinary citizens.

Government on the Path to Major Tax Reforms

The Central Government, led by Prime Minister Narendra Modi, is preparing to implement major reforms in the Indian tax system. Steps like rate rationalisation and simplification have already been taken in Income Tax and GST. The primary objective was to increase cash availability in the hands of the common man and boost overall consumption in the country. Following the success of GST reforms, the government is now planning to make the customs system more transparent and simpler.

What Message Did Nirmala Sitharaman Convey?

While speaking at the recent Hindustan Times Leadership Summit, Finance Minister Nirmala Sitharaman made a major announcement. She clearly stated that the Customs Department needs a complete “overhaul.” She said, “We need to simplify it so that people don’t feel it’s difficult to comply with it.”

According to the Finance Minister, the successful changes made in the income tax system—such as transparency, faceless assessment, and improved administration—should now be implemented in customs as well. She emphasized that the government’s focus is on reducing government interference, expediting goods clearance, and eliminating arbitrariness through the use of technology.

Targeting Customs After GST

During the financial year 2025, the government has already taken several significant steps regarding Income Tax and GST. Now, plans are being made to bring similar transparency to the Customs Department. The Finance Minister stated that the proposed reforms will be comprehensive and will include rationalizing customs duty rates.

Below is a comparison of the key objectives of Income Tax and Customs reforms:

The Union Budget is expected to be presented on February 1st. It is anticipated that detailed announcements regarding these reforms will be made in that budget. If these measures are implemented, complexities in trade and commerce will decrease, further paving the way for ‘Ease of Doing Business.’

Disclaimer: This report is for informational purposes only. Please consult an expert before making any financial decisions.