After Income Tax, Now It’s Customs Duty’s Turn; Finance Minister Announces Major Changes—Action Before Budget 2026

New Delhi (The Uttam Hindu): After making the income tax system more transparent and faceless, the Central Government is now preparing major reforms in the Customs Duty department. On Saturday, Finance Minister Nirmala Sitharaman made this announcement at the Hindustan Times Leadership Summit (HTLS) 2025. She said that a complete overhaul of the customs system is her “next big clean-up assignment,” and this will be implemented before the 2026 Budget.

Speaking at the 23rd edition of the summit during a conversation with Hindustan Times Editor-in-Chief R. Sukumar, the Finance Minister discussed India’s economic challenges and the government’s upcoming roadmap.

Sitharaman made it clear that the customs system needs a complete transformation. Just like the government modernized the income tax department, similar changes will now be brought to customs to make it more transparent and efficient. The aim of these reforms is to improve the ease of doing business and curb corruption. She said that once these reforms are implemented, import–export processes will become simpler, and traders will be relieved from unnecessary hurdles. She assured that these major steps will soon start showing results on the ground.

Speaking about the old tax system, the minister said that earlier, the problem was not tax rates but the way tax administration functioned. The behaviour of officials often led to the term “tax terrorism” becoming common. She added that the Modi government introduced faceless and online systems to make income tax procedures simpler and more humane. Now, the goal is to bring the same level of transparency and reduced human involvement in the customs department.

During the discussion, Sitharaman also talked about the tough challenges India faced in recent years—COVID-19, global conflicts affecting food supply, financial pressure during election years, and border tensions. Despite all this, the government ensured that India’s economic growth did not slow down. She cited Jammu and Kashmir as an example, saying that after the Pahalgam attack and other difficulties, rebuilding the banking structure and the economy there reflects the government’s strong determination.