Budget 2026-27 announced several customs duty and tax changes. Basic customs duty removed on 17 cancer medicines, and 7 rare diseases added to the duty-free list. Customs duty on goods imported for personal use reduced from 20% to 10%. MAT (Minimum Alternate Tax) made the final tax with no further credit accumulation from April 1, 2026, and rate reduced from 15% to 14%. Customs exemptions for specified microwave-oven parts to deepen consumer electronics value addition. Phased withdrawal of concessions on undiffused silicon wafers (to boost domestic capability). All Finance Bill 2026 amendments reference the new Income Tax Act, 2025 sections rather than the repealed 1961 Act. Standard deduction for salaried taxpayers remains at ₹75,000.
Budget 2026: Cancer Medicines Customs Duty Removed; MAT Rate Cut to 14%; Key Tax Changes
AQuick answer
17 cancer medicines duty-free; personal imports duty halved to 10%; MAT cut to 14%; silicon wafer concessions phased out; all amendments under IT Act 2025.
Key facts
- Basic customs duty removed on 17 cancer medicines; 7 rare diseases added to duty-free list
- Customs duty on goods imported for personal use reduced from 20% to 10%
- MAT made final tax with no further credit accumulation from April 1, 2026; rate reduced from 15% to 14%
- Phased withdrawal of concessions on undiffused silicon wafers to boost domestic semiconductor capability
- All Finance Bill 2026 amendments reference new Income Tax Act, 2025 sections; standard deduction remains ₹75,000
Mains angle
Q: Budget 2026 tax reforms.
Answer (50 words):
Budget 2026-27 removed basic customs duty on 17 cancer medicines, added 7 rare diseases to duty-free list, halved personal-import duty 20 to 10 percent. Minimum Alternate Tax was cut 15 to 14 percent, made final without credit accumulation from 1 April 2026. Silicon-wafer concessions phased out; amendments reference Income Tax Act, 2025.
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Monetary & Fiscal PolicyIndian EconomyIndustrial Growth & Economic ReformsIndian Economy
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CoverageNationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourcePV Magazine India
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Linked questionMedium
What is the new MAT (Minimum Alternate Tax) rate effective from April 1, 2026 as per Budget 2026-27?
Explanation · Correct answer C
The article states MAT rate was reduced from 15 percent to 14 percent effective April 1, 2026.
Source: PV Magazine India
Frequently asked questions
Which cancer medicines had customs duty removed in Budget 2026-27?
Budget 2026-27 removed **basic customs duty on 17 cancer medicines** and added **7 rare disease medicines to the duty-free list**. The **MAT (Minimum Alternate Tax) rate was also cut from 15% to 14%** and made the final tax with no further credit accumulation from April 1 2026.
What changes were made to Minimum Alternate Tax (MAT) in Budget 2026-27?
Budget 2026-27 introduced two key **MAT changes**: **(1) MAT rate reduced from 15% to 14%** and **(2) MAT made the final tax** with no further credit accumulation from April 1 2026. This simplifies corporate tax calculations and aligns with the new Income Tax Act 2025.
What customs duty change was announced for personal imports in Budget 2026-27?
Budget 2026-27 **halved the customs duty on goods imported for personal use from 20% to 10%**. The budget also provided customs exemptions for **specified microwave-oven parts** to deepen consumer electronics manufacturing value addition.
What is the standard deduction for salaried taxpayers in Budget 2026-27?
The **standard deduction for salaried taxpayers remains at ₹75,000** in Budget 2026-27 with no change announced. Income tax slabs were also not changed. The broader shift to the **Income Tax Act 2025** takes effect from April 1 2026.
What is the significance of phased withdrawal of concessions on undiffused silicon wafers in Budget 2026?
Budget 2026-27 announced the **phased withdrawal of customs concessions on undiffused silicon wafers** to encourage **domestic semiconductor manufacturing capability**. As India builds its ecosystem under **India Semiconductor Mission 2.0**, reducing import concessions on silicon wafers incentivizes domestic wafer fabrication.
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