What Nirmala Sitharaman Announced for the Aviation Sector in the Union Budget 2026?
Finance Minister of India, presenting the Union Budget 2026, announced basic customs duty exemption on raw materials for the manu
The government of India will increase limits on items that passengers can bring abroad under duty-free allowances to align them with current travel realities, Finance Minister Nirmala Sitharaman said in her Budget 2026 speech on 2nd February 2026
As mentioned in a CBIC notification issued later on 2nd February 2026, the Indian government has overhauled travel rules by introducing the new Baggage Rules, 2026, which will replace the Baggage Rules, 2016.
The new rule, effective from February 2, 2026, increases the general tax-free allowance for Indian nationals and Indian-origin tourists from INR 50,000 to INR 75,000. In a major move to support contemporary travellers, the Indian government now allows duty-free import of one new laptop or notepad for passengers aged 18 or above, an item that before did not have a dedicated free allowance under the previous rules.
Most importantly, for any items passengers carry on a plane for personal use that exceed these free baggage limits, the standard customs duty has been reduced from 20% to 10%, effectively, which significantly reduces the tax burden on added purchases. This new regime also increases the use of electronic declarations, ensuring a faster, more seamless experience for the passengers at international terminals.
Source: Business Standard
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