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Politics

Finance Minister Nirmala Sitharaman Signals Major Customs Overhaul Ahead Of Budget

ADVERTISEMENTFinance Minister Nirmala Sitharaman Signals Major Customs Overhaul Ahead Of BudgetThe government plans to make customs assessments entirely faceless, mirroring the income-tax model, with a comprehensive restructuring of the department also under consideration. NDTV Profit Desk06 Dec 2025, 10:43 AM IST i06 Dec 2025, 10:43 AM IST06 Dec 2025, 10:43 AM ISTSaveHowever, she acknowledged that some duty slabs remain high and “will have to come down” as part of a rationalised structure (Source: Sansad TV via PTI Photo) Show Quick ReadSummary is AI Generated. Newsroom ReviewedFinance Minister Nirmala Sitharaman has indicated that a sweeping overhaul of India’s customs framework is imminent, signalling one of the most significant reforms to the system in recent years. Speaking at the Hindustan Times Leadership Summit, the Minister described customs as her “next big clean-up job,” emphasising the urgent need to simplify the regime, enhance transparency and make the entire process fully faceless. Sitharaman noted that while India is broadly aligned with global customs standards, persistent issues in execution continue to hamper efficiency.

Finance Minister Nirmala Sitharaman Signals Major Customs Overhaul Ahead Of Budget

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Key Highlights

  • She drew parallels with the earlier challenges in income tax administration, where complicated procedures had resulted in what she termed “tax terrorism.”The government subsequently undertook a comprehensive reform—simplifying processes, improving technology and introducing faceless assessments.
  • A similar model, she said, is now being prepared for customs. A key concern driving the revamp is the rising risk of illicit contraband entering the country.
  • The Minister called this a “serious problem” that requires stronger risk-based checks without adding friction for legitimate trade.
  • By making the system fully faceless and automating decision-making, the government aims to eliminate discretion, reduce harassment and ensure consistent enforcement. Sitharaman highlighted that customs duties have already been reduced steadily over the last two years.
  • However, she acknowledged that some duty slabs remain high and “will have to come down” as part of a rationalised structure.
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Sources

  1. Finance Minister Nirmala Sitharaman Signals Major Customs Overhaul Ahead Of Budget

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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