Union Budget: Know What Gets Cheaper & Costlier

Union Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 raising the discussion yet again on the impact it would have on various goods and services. This year’s Budget aims to boost growth and household sentiment. The precedent for this was set with the rationalisation of GST revamped in the last quarter of 2025.

Now, let us see what gets cheaper and costlier in the Union Budget this year.

Duty cuts have been announced on several items making them cheaper. They include

i. Foreign education as TDS has been lowered under the Liberalised Remittance Scheme for education-related expenses

ii. TCS on overseas tourism packages has been slashed to 2% from the earlier 5-20%

iii. Alcoholic liquor scrap customs duty reduced from 5% to 2%

iv. Basic Customs Duty (BCD) has been exempted on microwave ovens, energy transition equipment, solar glass ingredients and Capital goods for critical minerals, components of civilian aircraft manufacturing making them cheaper.

v. Similarly, BCD has been exempted on drugs for rare and cancer diseases, fish catch by Indian fishermen in Indian waters, goods imported for nuclear power projects. BCD has been slashed from 20% to 10% on personal-use imports too, bringing down their prices.

Things Getting Costlier:

i. Penalty on individuals/firms misreporting their Income tax increased to 100%.

ii. Penalty on non-disclosure of movable assets.

iii. Future Options Trading as Securities Transaction Tax (STT) raised to 0.05% from 0.02%.

iv. Luxury watches, alcohol, cigarettes, beedis, pan masala and gutkha

v. Coffee roasintg, brewing and vending machines.

vi. Import duty has been reduced on certain types of fertilsiers but the prices of ammonium phosphate, ammonium nitro phosphate are likely to increase

vii. Prices of equipment used in cinematography, and cameras are set to soar.