Foreign travel gets cheaper:Govt reduces tax on 17 cancer drugs ; alcohol may get expensive; tax on trading also increased

In this budget, only changes in import duties have a marginal impact on the prices of goods. Most prices are now determined by decisions taken by the GST Council. Let’s take a look at what has become cheaper—and what has become more expensive—in this budget: Cheaper 1. Cancer medicines become cheaper: The government has removed the basic customs duty on 17 life-saving cancer drugs. The government has removed basic custom duty on 17 drugs used in cancer treatment. In addition, medicines and special foods imported for the treatment of 7 rare diseases will also now be tax-free. This will provide significant financial help to families dependent on expensive foreign medicines for treatment. 2. Microwave ovens cheaper: Duties on parts have been reduced, encouraging higher domestic manufacturing. To promote domestic manufacturing, the government has made some key changes in the electronics sector. Now, custom duty on special parts used in making microwave ovens has been reduced. This may lead to a decrease in microwave prices in the coming days. The government aims for India to become a global hub for consumer electronics. 3. EV batteries and solar panels cheaper: Raw materials for production now tax-free Considering energy transition, the government has expanded the scope of tax exemptions on machinery (capital goods) used to make lithium-ion batteries. Now, materials used for battery energy storage systems will also be duty-free. Similarly, the duty on ‘sodium antimonate’ used to manufacture solar glass has been removed, making solar panel production cheaper in the country. 4. Seafood, shoes, clothes likely to become cheaper: Duty exemptions on raw materials to boost exports To increase exports, the government has announced measures for the marine products, leather, and textile sectors. Duty-free input limit for seafood exports has been increased from 1% to 3%. Tax exemptions will now be available on the export of leather and synthetic shoes, along with ‘shoe uppers’. The time limit for preparing export goods has been increased from 6 months to 1 year. 5. Air travel and aircraft maintenance cheaper: Custom duty removed on parts To promote civil aviation, custom duty on parts and components used in aircraft manufacturing has been removed. In the defence sector as well, raw materials imported for aircraft maintenance and repair (MRO) will now be tax-free. This will reduce the cost of manufacturing and maintaining airplanes in the country. 6. Imported goods for personal use will be cheaper: Tax reduced Good news for those importing goods for personal use from abroad. The government has reduced the tax rate on such items from 20% to 10%. In addition, rules for baggage clearance for travellers returning from abroad will be simplified, and the free allowance limit will be increased. Expensive TCS on alcohol has been increased from 1% to 2%. This may raise the price of alcohol, as it will affect the profit margins of shopkeepers. Securities Transaction Tax (STT) on future trading has been increased from 0.02% to 0.05% and on options to 0.15%. TCS stands for Tax Collected at Source. It is a kind of advance income tax. The shopkeeper will pay this 2% tax to the government now, which he can later adjust while filing his income tax return (ITR) at the end of the year. STT is a tax that applies to every transaction (buying and selling) you make. With the increased rates, you will now have to pay more money per transaction than before. Most prices determined by GST council Today, from the vegetables on your plate to the smartphone in your hand, most prices are determined by the GST Council, not the finance minister. From 22 September 2025, the GST slabs were reduced from four to two. Now, GST is levied only at 5% and 18% slabs. A decision on this was taken in the 56th meeting of the GST Council. This has made items like ghee, paneer, cars, and ACs cheaper.
Now answers to two important questions… Question 1: With duty change in the budget, will products be available cheaper in shops from tomorrow? Answer: No. This is the biggest misconception. Changes in budget taxes affect ‘new stock’. Items already on the shopkeeper’s shelf will sell at the old price. Budget effects take time to show. Also, prices decreasing or increasing is not certain. It depends entirely on companies. Many times the government reduces duty, but companies don’t lower prices to increase their profit margin. Similarly, if raw materials become expensive in the international market, prices may remain stable or even increase despite tax reduction. So, nothing is certain. Question 2: Did the budget change the GST modifications that happened on September 22, 2025? Answer: No. The finance minister does not have the authority to change GST slabs in the budget. This requires a separate GST Council meeting. The budget can only increase or decrease import duty.