Finance Minister Nirmala Sitharaman announced there would be no import duties on 35 capital goods used to make Electric Vehicle (EV) batteries and 28 items used in mobile phone batteries. File
| Photo Credit: ANI
Finance Minister Nirmala Sitharaman on Tuesday (March 25, 2025) announced there would be no import duties on 35 capital goods used to make Electric Vehicle (EV) batteries and 28 items used in mobile phone battery making to boost domestic manufacturing.
Parliament Budget Session Day 10 highlights
Replying to the debate on the Finance Bill, which was passed by the Lok Sabha, the Finance Minister said Customs tariff rationalisation in Budget 2025 was aimed at boosting domestic production, enhancing export competitiveness by reducing duties on raw materials and inputs and making domestic products cost-effective.
“This Finance Bill 2025 relating to the Customs aims to rationalise tariff structure and address duty inversion. These will also support manufacturing units, domestic value addition, promote exports, facilitate trade and also provide relief to the common people,” Ms. Sitharaman said.
The government moved 35 official amendments to the Finance Bill, including one to abolish a six per cent digital tax on online advertisements, during its passage in the Lower House.
Calling the rationalisation of Customs a “very big step forward,” the Minister said importers would benefit while exporting industries, that import parts and components, would become cost competitive.
Tariff rationalisation
The announcement came just ahead of a U.S. delegation arriving in India to carry forward talks on President Donald Trump’s proposal of imposing reciprocal tariffs. However, Ms. Sitharaman asserted that the process of Customs tariff rationalisation had been going for the past two years.
The Finance Minister also informed the House that the new Income Tax Bill, seeking to replace the Income Tax Act of 1961, would be taken up for discussion during the next Monsoon session, as it was currently being examined by a Select Committee of Parliament.
Referring to the concerns expressed by Opposition members regarding income tax officers being authorised to examine digital records for assessment purposes in the new income tax Bill, Ms. Sitharaman said it was necessary to make this provision as the 1961 tax law permitted only the examination of physical books of accounts or manual records of income-expenditure.
Nudge campaign
She also informed the House that the Income Tax department carried out a ‘nudge’ campaign in which taxpayers were encouraged to voluntarily disclose their foreign income and assets. SMS and E-mails were sent to around 19,501 select taxpayers, asking them to review their Income Tax returns filed for 2024-25 based on information available to Income Tax of foreign deposits and assets, she said.
Cumulatively, the nudge resulted in the declaration of foreign assets worth ₹29,208 crore and foreign income of ₹1,089 crore in Schedule FA (foreign assets) by 30,161 taxpayers, Ms. Sitharaman added.
Noting that the Finance Bill provides “unprecedented tax relief,” the Finance Minister said personal income tax collection for 2025-26 was projected at ₹13.6 lakh crore.
“The Revised Estimates for 2024-25 is ₹12.2 lakh crore. So, ₹12.2 lakh crore is going to be ₹13.6 lakh crore and this is done with a certain realistic calculation,” she said.
Answering queries by Opposition members on tax relief to those people whose annual income exceeded ₹12 lakh threshold for zero tax liability, the Finance Minister said “marginal relief” would be provided to such taxpayers.
“Even when I read the Budget speech, I made it very clear that marginal relief is being granted…For instance, with an income ₹12.10 lakh, ₹10,000 only will be paid as income tax,” Ms. Sitharaman explained, adding, “Tax without marginal relief would have been ₹61,500”.
She clarified that for salaried people, there would be no tax liability up to an annual income of ₹12.75 lakh, factoring in ₹75,000 standard deduction.
With regard to an amendment regarding the abolition of the six per cent Equalisation Levy on online advertisements, the Finance Minister said it was done to address “uncertainty in the international economic conditions”.
The Minister also asserted that the Narendra Modi government had ensured full parity between pensioners of pre and post-seventh Central Pay Commission. With regard to amendment, she said the government had restored the March 2008 position of the manner of fixing pensions, which was recommended by the Sixth Central Pay Commission.
“By this amendment, the government is actually restoring that which was accepted in March 2008…the sixth pay commission recommendation,” the Minister said.
Published – March 25, 2025 10:39 pm IST
