NEW DELHI, March 25: Lok Sabha on Tuesday passed the Finance Bill, 2025, aimed at implementing the financial proposals of the Central Government for the financial year 2025-2026.
Union Finance Minister Nirmala Sitharaman, while replying to the discussion on the bill, highlighted the unprecedented tax relief provided under the new tax regime, stating that individuals with an income of up to ₹12 lakh will not have to pay any income tax. She also announced that the new income tax bill is likely to be taken up for discussion in the next monsoon session.
Sitharaman emphasized that the Finance Bill aligns with the country’s vision of Viksit Bharat by 2047 and incorporates several measures to boost economic growth. The bill related to customs aims to rationalize the tariff structure, addressing duty inversion, promoting manufacturing, facilitating trade, and providing relief to the common people. The Union Budget 2025-26, as part of this bill, focuses on enhancing domestic production and export competitiveness by reducing duties on raw materials.
The Finance Minister also revealed that the bill proposes the removal of seven custom tariff rates for industrial goods and the inclusion of 35 products in the exempted duty list to promote battery manufacturing for electric vehicles. Additionally, 28 more capital goods have been added to the exempted duty list for the manufacturing of mobile phone batteries, a move that is expected to significantly boost domestic production. Furthermore, the government has proposed extending the period of incorporation for start-ups by five years, allowing those incorporated before April 1, 2030, to avail themselves of available benefits.
During the discussion, Congress MP S. Jothimani raised concerns about unemployment, accusing the government of failing to provide adequate relief to the common man. She pointed out that the income tax rebate up to ₹12 lakh would only benefit around one crore people. BJP MP Jagdambika Pal countered this argument, stating that India is the fastest-growing economy in the world and has risen to become one of the top five global economies.
Earlier in the session, the Lok Sabha also witnessed protests and an adjournment over the alleged non-release of funds under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA).
