Finance Minister's Announcements in Lok Sabha

On March 25, 2025, Finance Minister Nirmala Sitharaman addressed the Lok Sabha to discuss key measures in the Finance Bill 2025.

Customs Tariff Rationalisation

• No import duties on 35 capital goods for EV batteries and 28 items for mobile phone batteries to boost domestic manufacturing.
• Rationalisation aims to enhance production, export competitiveness, and cost-effectiveness of domestic products.
• 35 official amendments introduced, including the abolition of a 6% digital tax on online advertisements.
• Customs tariff rationalisation is a significant step to benefit importers and make exporting industries cost competitive.
• Ongoing efforts for the past two years, with focus on ending duty inversion and facilitating trade.

New Income Tax Bill

• The new Income Tax Bill is under examination by a Select Committee of Parliament and will replace the Income Tax Act of 1961.
• The Bill allows digital record examination for assessments, addressing limitations of the 1961 law.
• A 'nudge' campaign encouraged taxpayers to disclose foreign income, yielding declarations of ₹29,208 crore in assets and ₹1,089 crore in income.

Tax Relief and Projections

• Projected personal income tax collection for 2025-26 at ₹13.6 lakh crore, up from ₹12.2 lakh crore in 2024-25.
• Marginal relief for taxpayers with income slightly above ₹12 lakh, ensuring tax payments remain reasonable.
• Salaried individuals earning up to ₹12.75 lakh annually have no tax liability after considering a ₹75,000 standard deduction.

Policy Amendments and Other Announcements

• Abolition of 6% Equalisation Levy to address international economic uncertainties.
• Restoration of pension parity between pre and post-seventh Central Pay Commission pensioners, reverting to the March 2008 position based on the Sixth Pay Commission recommendations.