Amnesty Scheme, Duty Cuts Eyed for ₹1.52 Lakh Cr Customs Disputes in FY27 Budget

• Over ₹1.52 lakh crore in customs duty is locked in 38,014 litigation cases as of March 2024.
• Government may consider an amnesty scheme in the Budget for 2026-27 to resolve historical customs disputes and provide business certainty.
• Proposal to rationalize customs duty rates by reducing the number of slabs from 8 to 5-6, as suggested by Price Waterhouse & Co.
• Rationalization aims to address the inverted duty structure, reducing duties on raw materials to make them cheaper than finished goods imported via FTAs.
• Trade facilitation, including faster customs clearances, is also expected from the upcoming Budget.

Why It Matters: FY27 Budget may bring amnesty for customs disputes and duty rationalization to boost business certainty.