Customs overhaul next: Finance minister Nirmala Sitharaman announces major reforms ahead of budget 2026

New Delhi (The Uttam Hindu): After making the income tax system transparent and faceless, the next target of the central government is the Customs Department. Union Finance Minister Nirmala Sitharaman made this big announcement on Saturday from the platform of Hindustan Times Leadership Summit (HTLS) 2025. She made it clear that comprehensive reforms in the Customs Department are at the top of her priority list before Budget 2026. She termed it as her 'next big clean-up assignment'. During a conversation with Hindustan Times Editor-in-Chief R. Sukumar in the 23rd edition of the summit, the Finance Minister openly discussed the country's economic challenges and the upcoming roadmap.

The Finance Minister indicated that an overhaul of the customs system is the need of the hour. She stated that just as the government has reformed the Income Tax Department, customs will also be modernized and made transparent. The primary objective of these changes is to promote ease of doing business and curb corruption. Sitharaman stated that these reforms will simplify the import-export process and relieve traders of unnecessary hassles. She assured that significant steps in this direction will soon be visible on the ground.

Referring to the shortcomings of the old tax system, the Finance Minister said that previously, the common perception was that the problem was not the tax rates, but the tax administration process. The administration's approach was sometimes so aggravating that the term "tax terrorism" became common parlance. He said that the Modi government has made the income tax process much simpler and more humane by implementing a faceless and online system. Now, the government aims to bring similar transparency to the Customs Department to reduce human intervention in the system and speed up processes.

During her speech, Nirmala Sitharaman also mentioned the difficult challenges the country has faced in recent years. She explained that despite challenges such as the COVID-19 pandemic, the impact on food supplies due to global wars, the pressure of government spending in an election year, and border tensions, the government has not allowed the economy to slow down. Citing the example of Jammu and Kashmir in particular, she said that the government's ability to rebuild the banking system and economy after the Pahalgam attack and other challenges is a testament to the government's strong will.