Finance Bill 2025: The Lok Sabha has passed the Finance Bill 2025, incorporating 35 government amendments aimed at tariff rationalisation and boosting domestic manufacturing. The Bill seeks to give effect to the financial proposals of the Central Government for the financial year 2025-2026. Replying to the discussion on the Bill, Union Finance Minister Nirmala Sitharaman said, the Finance Bill 2025 provides unprecedented tax relief to honour taxpayers and ease of doing business. She said, under the new tax regime, there will be zero income tax upto the income of 12 lakh rupees. Mrs Sitharaman announced that the New Income tax bill is likely to be taken up for discussion in the next monsoon session.
The Minister said, as per the expectation of people of the country and the goal of Viksit Bharat by 2047, the Union government has taken lots of measures through this Finance Bill. Mrs Sitharaman said, the Bill relating to customs aims to rationalize tariffs structure to address duty inversion. She added that this will support manufacturing Units, promote exports, facilitate trade and provide relief to common people. Mrs Sitharaman said, the Union budget 2025-26 aims to boost domestic production and enhance export competitiveness by reducing duties on raw materials. She informed that this Finance bill also proposed to remove seven custom tariff rates for industrial goods.
The Minister said, in the Finance Bill, the government has also proposed to include 35 products in the exempted duty list to promote battery manufacturing for Electric vehicles. Besides, 28 additional capital goods have also been added in the exempted duty list for manufacturing of mobile phone batteries. She said the decision will boost domestic manufacturing. The Finance Minister emphasised that these changes are part of a broader effort to align India’s trade and investment policies with global standards while ensuring fair taxation and promoting domestic industry.
Mrs Sitharaman said, government has also proposed to extend the period of incorporation of Start ups by five years to allow the benefits available to them which are incorporated before 1st April 2030.
Earlier, Participating in the discussion, S Jothimani of Congress raised the issue of unemployment in the country alleging that the government is doing nothing to provide relief to the common man. She said, the income tax rebate of upto 12 lakh rupees will only benefit one crore people. Jagdambika Pal of BJP said, India is the fastest growing economy in the world. He said, the country has become the top five economies in the world.
Earlier, Lok Sabha witnessed protest and adjournment over the alleged non-release of funds related to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA). Later, the House adjourned for the day.
