Govt to fix inverted duty structure in Budget for 13 to 14 products, boosting local manufacturing

Published on 24 April 2026

Input taxes are higher than finished goods for key items

Ahead of the Union Budget on February 1, the government is considering changes to an “inverted duty structure” affecting 13 to 14 products. In some cases, taxes on inputs are higher than on finished goods, inflating costs for manufacturers and weakening competitiveness. The Commerce Ministry has flagged the issue to the Finance Ministry, urging reform to support local manufacturing.

Inverted duty structure means input taxes exceed finished goods taxes
Commerce Ministry shared a list of 13 to 14 affected products
Higher costs could be reduced to improve manufacturing competitiveness
Finance Minister Nirmala Sitharaman presents the Budget on Feb 1

#manufacturing #tax reforms #union budget #customs duty #commerce ministry

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Govt to fix inverted duty structure in Budget for 13 to 14 products, boosting local manufacturing

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