NEW DELHI: Finance minister Nirmala Sitharaman on Thursday dismissed charges that govt was reducing customs duty under pressure from the Trump administration, arguing that it was in line with the Centre’s policy.
“This is a consistent thing. I heard quite a few members saying that in response to the tariff war announced by president Trump we are doing this. No, we have been doing it since 2023. Steadily, every year more items are being brought in, keeping in mind Atma Nirbhar Bharat (commitment) at the same time Viksit Bharat’s requirements as much as simplifying customs duty and compliance… It has nothing to do with today’s global situation but a process that will continue in future,” FM said, while replying to the discussion on the Finance Bill in Rajya Sabha.
Several opposition MPs, including former FM P Chidambaram had alleged that govt had made tax changes under pressure from the US. In the budget, govt had lowered levies on high end bikes and batteries and their inputs, among several things, while also rationalising the number of customs slabs.
After a voice vote, the Upper House returned the Finance Bill 2025 to the Lok Sabha, along with 35 amendments and thereby completing the 2025-26 budgetary exercise. The House also returned the Appropriation Bill (3) with a voice vote.
On concerns related to the Validation of the Central Civil Services (Pension) Rules and Principles for Expenditure on Pension Liabilities, FM said that they do not in any way alter the existing pensions of existing civil pensioners from the present stage. Defence pensioners are also not affected in any way as they are covered by separate rules.
While reiterating govt’s commitment to adhering to the fiscal glide path, Sitharaman said that instead of being cautious about revenue, the govt reduced the income tax and tariffs, which will go a long way in making India a manufacturing hub. “Tendency of the finance ministry is to exercise caution and not let go of revenues but, here we wanted to use this opportunity to show our respect for the Indian taxpayer,” Sitharaman said.
