Finance Minister Nirmala Sitharaman Plans Customs Reform For Simplification, Transparency, And Duty Reduction In India

Nirmala Sitharaman Plans Complete Overhaul of Customs System

Finance Minister Nirmala Sitharaman announced on Saturday that her next major assignment will be a complete overhaul of India’s customs system, as part of broader economic reforms. Speaking at the HT Leadership Summit, she emphasised the need to simplify and make customs rules more transparent for businesses and citizens alike.

Focus on Simplification and Transparency

Sitharaman said, “We need to have customs a lot more simplified for people to feel that it is not too tiresome, cumbersome for them to comply with expectations and rules, to make it more transparent.” She added that India generally aligns with World Customs Organisation standards and maintains those benchmarks. Customs involves the collection of tariffs and regulation of goods, vehicles, personal belongings, and hazardous items entering or leaving the country.

Learning from Past Reforms in Tax Administration

Drawing parallels to income-tax reforms, she noted that issues often arise not from rates themselves but from administration, citing the old term “tax terrorism.” Initiatives like faceless assessments have already streamlined income-tax processes, making them less intimidating, and she aims to bring similar reforms to customs, balancing efficiency with safeguards against illicit trade.

Steady Reduction in Customs Duties

Sitharaman highlighted that customs duties have been steadily reduced over the past two years. “For items still above optimal rates, we will have to bring them down as well. Customs is my next big cleaning-up assignment.” She also proposed reducing direct interaction between officials and cargo, relying more on comprehensive scanning to minimise discretion and build trust.

(This News Has Been Syndicated From ANI)