Union Budget 2026: What gets cheaper and what gets costlier

Union Budget 2026: During record-breaking ninth consecutive Budget speech on February 1, 2026, Finance Minister Nirmala Sitharaman focused on structural reforms and easing the cost of living for specific segments of society. Union Budget 2026: What gets cheaper and what gets costlier.

While the “middle class” received the significant relief of zero tax on income up to Rs 12 lakh (under the new regime), the broader list of goods impacted by customs duty and tax changes reveals a clear focus on healthcare, technology, and export promotion.

What gets Cheaper:

The budget provided substantial relief for medical treatments and high-tech manufacturing.

Life-Saving Medicines: Basic Customs Duty (BCD) has been fully exempt for 17 cancer drugs. Additionally, medicines and specialized nutrition for seven more rare diseases have been added to the duty-free list.

Electronics & Appliances: Prices of Microwave Ovens are expected to drop as the government exempted duty on specific parts used in their manufacture.

Travel & Education: The Tax Collected at Source (TCS) on foreign tour packages and foreign education/medical remittances has been slashed from 5%-20% down to a uniform 2%.

Personal Imports: The tariff rate on all dutiable goods imported for personal use (under Chapter 9804) has been reduced from 20% to 10%.

Aviation & Defense: Aircraft components, parts, and engines for civilian and training aircraft are now exempt from BCD.

Green Energy: Capital goods used for manufacturing Lithium-Ion Cells (for both batteries and energy storage systems) and certain solar glass ingredients are now cheaper due to duty exemptions.

Sports Equipment: Prices are expected to ease following the launch of the ‘Khelo India Mission’ and associated duty rationalizations.

What gets Costlier:

The government increased duties on luxury imports and “sin” goods to encourage domestic manufacturing and discourage non-essential consumption.

Luxury Goods: Imported luxury watches and alcohol are set to become more expensive due to higher tax/duty structures.

Tobacco & “Sin” Goods: Cigarettes, pan masala, and other tobacco products will see a price hike due to increased excise duties.

Imported Umbrellas: Low-cost imported umbrellas (and their parts) will now attract a higher duty of 20% or ₹60 per piece (whichever is higher).

Specific Industrial Equipment: Customs duty exemptions were removed for ATM/Cash dispenser machines, Potassium Hydroxide, and certain film/broadcasting equipment for foreign crews.

Coffee Machines: Coffee roasting, brewing, and vending machines are expected to cost more as previous duty exemptions were withdrawn.

Stock Trading: For investors, the Securities Transaction Tax (STT) on futures has been raised from 0.02% to 0.05%, and on options from 0.1% to 0.15%.

The Finance Minister framed these changes under the “Reform Express” strategy, aiming for a fiscal deficit of 4.3% of GDP for FY27. By increasing public capital expenditure (Capex) to Rs 12.2 lakh crore, the budget signals a strong commitment to long-term infrastructure over short-term subsidies.

Also Read: Income Tax Changes in Budget 2026: ITR Revision Deadline Changed