E-Paper
Budget 2026: Lower customs for personal items brought in by air
The Finance Bill, 2026 proposes cutting the customs duty rate to 10% from 20% for all dutiable articles intended for personal use under the Customs Tariff Act.
Those flying into India from abroad will face significantly lower customs fees on personal goods starting next year, as the government moves to slash duties on taxable items brought in for personal use.
The Finance Bill, 2026, introduced in the Lok Sabha, proposes cutting the customs duty rate to a flat 10% from 20% for all dutiable articles intended for personal use under the Customs Tariff Act. This reduction applies to items falling under heading 9804, which covers goods imported for personal use by air or post.
“I propose to reduce the tariff rate on all dutiable goods imported for personal use from 20 per cent to 10 per cent,” Union finance minister Nirmala Sitharaman said while presenting the budget on Sunday.
The new 10% rate replaces the previous higher levies and is scheduled to take effect April 1, 2026. For travellers who shop abroad, this amendment effectively lowers the cost of bringing in taxable gifts or personal items that exceed duty-free allowances.
In addition to the rate cut, the government has notified the new Baggage Rules, 2026, which replace the 2016 regulations to streamline allowances and clearance procedures.
“I propose to revise provisions governing baggage clearance during international travel to address genuine concerns of passengers,” Sitharaman said. “The revised rules will enhance duty-free allowances in line with the present-day travel realities and provide clarity in temporary carriage of goods brought in or taken out.”
Under the revised rules, the general duty-free allowance for residents, tourists of Indian origin, and foreigners with valid visas has been set at ₹75,000 for articles other than specific restricted items like firearms or excess liquor. For tourists of foreign origin, this allowance is set at ₹25,000.
The bill also empowers the Central Board of Indirect Taxes and Customs to tighten regulations on how goods imported by post or courier are held in custody, signalling a push for more regulated clearance procedures alongside the lower fees.
