|
Congress MP Manish Tewari on Monday questioned whether the Union Budget 2026-27 amounts to a concession to the United States without a formal agreement, pointing out that customs duty cuts appear to benefit certain sectors.
In a post on X, the Congress leader wrote, "What is peculiar if not quixotic in Finance Bill 2026 ! Myriad number of Customs duty reductions and exemptions Done through Notifications, Rate alignments, Chapter-specific tariff rationalisation de-horse an explicit policy narrative in the Budget Speech. Does this align with US interests? Yes." https://x.com/ManishTewari/status/2018144565883199655?s=20 Tewari said that the sectors benefiting from the customs duty cuts, covering electronics, semiconductors, medical devices, select chemicals, civil aviation parts, and clean energy inputs, coincide with repeated US demands, raising questions about whether the Budget reflects concessions without a formal agreement. "The sectors benefiting strangely and coincidentally overlap neatly with repeated US asks from India. The Areas of Alignment with US asks are A) Electronics & components. B) Semiconductors & capital goods, Medical devices. C) Select chemicals & intermediates Civil aviation parts. D) Clean energy inputs. Were these exactly not the friction points raised repeatedly by the US Trade Representative (USTR) ? Does this Smell like a concession without agreement?" the post read. A day earlier, Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 in Lok Sabha, her ninth consecutive Union Budget. The government, in the Budget, has sharply reduced the tax collected at source (TCS) on overseas tour packages to 2 per cent, down from the earlier 5-20 per cent structure, without any minimum amount. To support clean energy and self-reliance, the Budget exempts customs duty on sodium antimonate, a key ingredient in solar glass manufacturing. Customs duty exemptions have been extended for nuclear power projects till 2035, regardless of plant size, reinforcing the government's long-term energy security strategy. The Budget provides BCD exemption on components and parts, including engines, used in the manufacture of civilian aircraft. Specified parts used in the manufacture of microwave ovens have also been exempted from customs duty, supporting value addition in consumer electronics. International travellers will benefit from a simplified baggage regime, with customs duty on all dutiable personal-use imports cut from 20 per cent to 10 per cent. "To rationalise the customs duty structure for goods imported for personal use, I propose to reduce the tariff rate on all dutiable goods imported for personal use from 20 per cent to 10 per cent," the Finance Minister said. (ANI)
|
