Budget 2026: MAT Becomes Final Tax, Customs Duties Slashed for Key Sectors

• Finance Minister Nirmala Sitharaman announced a revised Minimum Alternate Tax (MAT) regime, reducing the rate from 15% to 14%.
• From April 1, 2026, MAT will be treated as a final tax, eliminating carry-forward or utilisation of MAT credit to simplify corporate tax compliance.
• Customs duties were rationalised, including exemptions for capital goods for critical minerals, components for microwave ovens, and 17 cancer-related drugs.
• The aviation sector received BCD cuts on parts for civilian aircraft manufacturing and MRO activities, while fish catch by Indian vessels became duty-free.
• Personal goods import tariff reduced to 10%, TCS for LRS on education/medical payments cut to 2%, and a Customs Integrated System planned for faster cargo clearance.

Why It Matters: Budget 2026 simplifies corporate tax with a final MAT and boosts key sectors through customs duty reductions.