Lok Sabha passed the Finance Bill 2025 on Tuesday (March 25), incorporating 35 government amendments. Finance Minister Nirmala Sitharaman outlined changes aimed at tariff rationalisation and boosting domestic manufacturing while discussing the bill.

Sitharaman reiterated that the customs duty rationalisation announced in the Budget is moving forward.

The government is removing seven customs tariff rates to address duty inversion and lower input costs.

The Finance Bill now ensures that imports will attract either a cess or a surcharge, but not both.

To further support domestic production, the government has exempted 35 additional capital goods for EV batteries and 28 for mobile manufacturing from customs duties.

#NewsFlash | Removal of 7 custom #tariff rates, exemption of 35 additional cap goods for #EV batteries & 28 for mobile manufacturing proposed in Finance Bill

Amendments to simplified safe harbour regime for investment funds and proposal for imports to attract either a cess or… pic.twitter.com/mivzEG3P7H

— CNBC-TV18 (@CNBCTV18Live) March 25, 2025

Additionally, amendments to the simplified safe harbour regime for investment funds have been introduced to provide greater clarity and ease of doing business.

The Finance Minister emphasised that these changes are part of a broader effort to align India’s trade and investment policies with global standards while ensuring fair taxation and promoting domestic industry.