Union Budget 2026–27 waives customs duty on 17 cancer drugs and cuts TCS on overseas remittances

Key facts

• Finance Minister Nirmala Sitharaman fully exempted basic customs duty on 17 cancer drugs and on medicines, drugs and food for special medical purposes related to seven rare diseases.
• Tax Collection at Source (TCS) on overseas tour packages reduced to 2% from the earlier 5–20% with no minimum amount.
• TCS on foreign remittances for education and medical treatment under Liberalised Remittance Scheme (LRS) cut to 2% from 5%.
• Customs duty on specified manufacturing parts of microwave ovens exempted.
• Customs duty on personal-use imports by international travellers reduced to 10% from 20%.
• Export realisation period for textile and leather exporters extended to one year.
• Basic customs duty raised on low-cost imported umbrellas, ATM/cash dispenser machines and parts, potassium hydroxide, film & broadcasting equipment for foreign crews, imported zoo animals and birds, ammonium phosphate/nitro-phosphate fertilisers and naphtha, coffee roasting/brewing/vending machines, and castor oil cake.
• Securities Transaction Tax (STT) on futures trading increased to 0.05% from 0.02% and on options premium and exercise to 0.15%.
• Tax Collection at Source (TCS) on sale of alcoholic liquor, minerals and scrap raised to 2% from 1%.
• National Calamity Contingent Duty (NCCD) on chewing tobacco and gutkha raised to 60% from 25% while effective duty incidence remains at 25% through notification.