Budget 2026 Highlights: What’s Cheaper, What’s Costlier, and What It Means for You

• Ezeepay
• February 2, 2026

On February 1, 2026, Finance Minister Nirmala Sitharaman presented a historic ninth consecutive Union Budget. Focused on the three pillars of “Kartavya” (Duty)—growth, aspirations, and inclusive resources—the Budget 2026-27 sets a bold path toward a “Viksit Bharat.”

For the Ezeepay community of retailers, distributors, and consumers, this budget brings a mix of relief in healthcare and technology, alongside stricter measures in speculative trading and luxury imports. Here is your in-depth look at the Budget 2026 highlights.

1. The Price Tag Shift: What’s Cheaper?

The government has used customs duty as a tool to make essential living more affordable while boosting local manufacturing.

• Healthcare & Life-Saving Drugs: In a massive humanitarian move, the government has exempted basic customs duty on 17 cancer drugs. Furthermore, medicines and special foods for 7 rare diseases are now duty-free, significantly lowering treatment costs for families.

• Personal Imports & Shopping: If you enjoy ordering gadgets or specialized products from abroad, there’s good news. The duty on all dutiable goods imported for personal use has been slashed from 20% to 10%.

• Foreign Education & Travel: The Tax Collected at Source (TCS) on overseas tour packages and education remittances (under LRS) has been rationalized to a flat 2%, down from the previous 5% or 20%. This makes your dream foreign trip or your child’s education much more affordable.

• Modern Kitchens: Planning to buy a microwave? The government has exempted duties on specific parts used to manufacture microwave ovens in India, which will lead to lower retail prices.

• Green Energy & EVs: To support a cleaner India, capital goods used to manufacture Lithium-ion cells for EV batteries and solar glass (Sodium Antimonate) are now cheaper due to duty removals.

2. The Price Tag Shift: What’s Costlier?

To discourage “sin” consumption and promote domestic alternatives, several items will see a price hike:

• Stock Market Trading (F&O): For the traders in our community, the Securities Transaction Tax (STT) has been increased. STT on Futures is now 0.05% (up from 0.02%), and on Options, it has jumped to 0.15%. This is a move to curb excessive speculative trading.

• Tobacco & Sin Goods: As expected, the National Calamity Contingent Duty (NCCD) on cigarettes and tobacco products has been hiked significantly, making them dearer.

• Luxury & Imports: Imported luxury watches and high-end alcohol will cost more as the government rationalizes duties to favor local premium brands.

• Daily Utilities: Certain imported parts for ATM machines and cash dispensers will now attract higher duties, and commercial LPG (19kg cylinders) saw a price hike of ₹49 immediately following the budget.

• Imported Umbrellas: To protect local cottage industries, a minimum duty of ₹60 per piece has been introduced on imported umbrellas.

3. Income Tax & The “New Tax Act”

While there were no changes to the existing tax slabs this year, the Finance Minister announced a revolutionary shift:

• The New Tax Act, 2025: Effective from April 1, 2026, this act will simplify the entire tax code, making forms easier to understand for the “aam aadmi.”

• Compliance over Cuts: The focus has shifted from lowering rates to reducing “tax terrorism.” You can now update your tax returns even after a reassessment has started (with a small 10% penalty), and many minor technical errors have been decriminalized.

• Standard Deduction: Remains at ₹75,000 for salaried individuals under the New Regime.

4. Big Wins for MSMEs and Retailers

Ezeepay’s core network of small business owners has plenty to cheer about:

• SME Growth Fund: A dedicated ₹10,000 crore fund has been proposed to help MSMEs become “Future Champions.”

• Easier Credit: The credit guarantee for MSMEs has been enhanced, allowing banks to lend more freely to small retailers without heavy collateral.

• Digital Infrastructure: Increased spending on Digital Public Infrastructure (DPI) ensures that platforms like Ezeepay can continue providing seamless AePS, Micro-ATM, and DMT services even in the remotest corners of India.

Summary Table: The Budget 2026 Highlights Quick Look

The Ezeepay Perspective

Budget 2026 highlights a clear shift towards a digital-first, health-conscious, and self-reliant India. While some costs like trading and luxury goods have gone up, the relief in healthcare and the massive push for MSMEs are signs of a strengthening economy.

At Ezeepay, we are ready to help you adapt to these changes. Whether it’s managing your increased shop turnover or using our digital banking tools to save on costs, we are your partner in progress.

How will Budget 2026 affect your business?

Let us know your thoughts in the comments!

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