| The Lok Sabha on Monday passed the Finance Bill 2025, incorporating 35 government amendments, including a significant one that abolishes the 6% digital tax on online advertisements. The passage of the bill marks the completion of the lower house’s role in the Budget approval process for the fiscal year 2025-26.
The Finance Bill will now move to the Rajya Sabha for consideration. Once approved by the upper house, the Budget process for the next financial year will be finalized.
Replying to the discussion on the bill, Union Finance Minister Nirmala Sitharaman highlighted that the Finance Bill aligns with the national vision of Viksit Bharat by 2047, incorporating several measures to strengthen economic growth. She noted that customs-related provisions in the bill aim to rationalize the tariff structure, address duty inversion, and boost domestic production. This move is expected to support manufacturing units, promote exports, facilitate trade, and provide relief to common people.
The minister detailed several manufacturing incentives introduced in the Finance Bill. The bill proposes the removal of seven custom tariff rates for industrial goods. It also includes 35 products in the exempted duty list to promote battery manufacturing for electric vehicles. Additionally, 28 capital goods have been added to the exempted duty list for the manufacturing of mobile phone batteries. She stressed that these measures will significantly boost domestic manufacturing and export competitiveness by reducing duties on raw materials.
The Finance Bill also proposes extending the period of incorporation for startups by five years, allowing those incorporated before 1 April 2030, to avail benefits under existing government schemes.
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