Key Points
- Budget 2026-27 aims for "Viksit Bharat" impacting prices of goods/services.
- Foreign education (LRS) is cheaper with TCS reduced from 5% to 2%.
- 17 Cancer drugs are cheaper; duty slashed from 10% to NIL in 2026-27.
The Union Budget 2026-27 serves as a roadmap for "Viksit Bharat’’. For the common man, the most immediate impact of any budget is the change in the prices of everyday goods and services. By tweaking the Basic Customs Duty (BCD) and Tax Collected at Source (TCS), the government has made several essential services like foreign education and cancer treatment significantly more affordable, while placing a higher premium on luxury imports and speculative trading.
The Full List: What’s Cheaper and Costlier?
| Category | Item / Service | Status | Change from Budget 2025 |
| Healthcare | 17 Cancer Drugs | 🟢 Cheaper | Duty slashed from 10% to NIL |
| Healthcare | Meds for 7 Rare Diseases | 🟢 Cheaper | Full customs duty exemption |
| Travel | Overseas Tour Packages | 🟢 Cheaper | TCS cut from 5%/20% to flat 2% |
| Education | Foreign Education (LRS) | 🟢 Cheaper | TCS reduced from 5% to 2% |
| Tech/Travel | Personal Use Imports | 🟢 Cheaper | Duty halved from 20% to 10% |
| Electronics | Microwave Oven Parts | 🟢 Cheaper | BCD on parts reduced to NIL |
| Aviation | Aircraft & Engine Parts | 🟢 Cheaper | Duty-free for manufacturing and MRO |
| Green Energy | Solar Glass (Sodium Antimonate) | 🟢 Cheaper | Customs duty removed |
| Green Energy | EV Battery Machinery | 🟢 Cheaper | Duty exemption for Lithium-ion cells |
| Energy | Biogas-blended CNG | 🟢 Cheaper | Biogas value excluded from Excise Duty |
| Industry | Critical Mineral Machinery | 🟢 Cheaper | Duty removed on processing capital goods |
| Exports | Seafood & Leather Inputs | 🟢 Cheaper | Duty-free import limit raised to 3% |
| Sports | Sports Equipment | 🟢 Cheaper | Duties cut under 'Khelo India Mission' |
| Financials | F&O Trading (Futures) | 🔴 Costlier | STT hiked from 0.02% to 0.05% |
| Financials | F&O Trading (Options) | 🔴 Costlier | STT hiked from 0.1% to 0.15% |
| Lifestyle | Imported Umbrellas | 🔴 Costlier | Minimum duty of ₹60/piece introduced |
| Sin Tax | Cigarettes & Gutkha | 🔴 Costlier | NCCD raised from 25% to 60% |
| Compliance | Income Tax Misreporting | 🔴 Costlier | 100% penalty on the tax amount |
| Business | ATM & Cash Dispensers | 🔴 Costlier | Higher BCD on imported parts |
| Resources | Coal, Iron Ore & Minerals | 🔴 Costlier | Higher export/regulatory duties |
| Luxury | Imported Alcohol & Watches | 🔴 Costlier | Duty and TCS (now 2%) rationalized |
| Energy | Nuclear Project Components | 🔴 Costlier | Selective exemptions removed |
| Kitchen | Commercial LPG (19kg) | 🔴 Costlier | Price hiked by ₹49 (as of Feb 1) |
| Business | Coffee Vending Machines | 🔴 Costlier | Customs duty exemption removed |
Also read: Budget 2026 Highlights: Summary, Key Points and Download PDF
Why the Prices Changed?
The Healthcare Win: The exemption of Basic Customs Duty on 17 life-saving cancer drugs is a massive relief for patients. Additionally, the government added 7 rare diseases to the duty-free import list for personal medicines, prioritizing affordable healthcare over revenue.
Easing the "Global Indian" Burden: One of the biggest surprises was the rationalization of TCS (Tax Collected at Source). Previously, high-value foreign trips or education remittances could see up to 20% tax collected upfront. By capping this at 2%, the government has improved the immediate cash flow for students and travelers.
Promoting "Make in India": Items like microwave ovens and smartphones are getting cheaper not because the finished product duty was cut, but because the parts used to make them in India now have zero duty. Conversely, items like imported umbrellas and ATM machines saw duty hikes to discourage low-quality imports and protect local manufacturers under Make in India initiative.
The "Sin Tax" and Markets: To curb speculative trading and consumption of harmful substances, the government increased the Securities Transaction Tax (STT) on F&O and the National Calamity Contingent Duty (NCCD) on tobacco products.
Also Read: Budget 2026: Check New Tax Slabs, Income Tax Rates and What is New Tax Act
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