The government plans to continue rationalizing tariff structures and aims to bring Customs duty on most items down to single-digit levels by the Budget for 2027-28 (FY28), Union Finance Minister Nirmala Sitharaman said. Law Enforcement Speaking at the National Council of Applied Economic Research's India Policy Forum in New Delhi, Sitharaman noted, "Maybe by the Budget of 2027-28, I had be able to say that, barring a few items, it (Customs duty) will come down to single digits. Even now, barring 13 items, we have rationalized the rate".

This move follows earlier reforms in corporate tax, income tax, and the Goods and Services Tax (GST), making Customs duty rationalization the next key focus area for the government. Several rates have been eliminated over recent Budgets, contributing to a decline in the average Customs duty rate to 10.66 per cent from 11.65 per cent, according to official estimates.