Union Budget 2026 places strong emphasis on Ease of Living, with Finance Minister Nirmala Sitharaman announcing sharp cuts in customs duty for personal imports, exemptions for critical medicines and rare diseases, while also proposing an increase in Stock Transaction Tax on derivatives to balance market efficiency and revenue considerations.

Author: Aditya Pareek | EQMint | Budget 2026

Presenting Union Budget 2026, Nirmala Sitharaman placed the Ease of Living agenda at the heart of her proposals, announcing significant relief for individuals through customs duty rationalisation and healthcare-focused exemptions, even as she introduced calibrated changes to Stock Transaction Tax (STT) to ensure balance in financial markets.

The announcements reflect the government’s attempt to combine citizen-centric relief with fiscal prudence and market stability.

Customs Duty Rationalisation for Personal Imports

One of the most impactful announcements under the Ease of Living framework is the rationalisation of customs duty on goods imported for personal use.

The Finance Minister proposed to:

• Reduce the tariff rate on all dutiable goods imported for personal use from 20% to 10%

This move effectively halves the customs duty burden on individuals importing goods for personal consumption, benefiting:

• Returning Indians and overseas travellers
• Individuals importing personal electronics, appliances, or household items
• Patients and families importing specialised equipment or supplies

By simplifying and lowering the duty structure, the government aims to reduce disputes, improve compliance, and make customs procedures more citizen-friendly.

Major Relief for Patients: Customs Duty Exemption on Medicines

In a healthcare-focused initiative, Sitharaman announced complete exemption from basic customs duty on 17 drugs and medicines, providing crucial relief to patients—particularly those suffering from cancer and other serious illnesses.

This measure is expected to:

• Reduce the cost of life-saving medicines
• Improve access to advanced treatments not manufactured domestically
• Ease financial pressure on families dealing with long-term or critical illnesses

Healthcare advocates have long called for such exemptions, especially where domestic alternatives are unavailable or insufficient.

Expanded Support for Rare Diseases

Recognising the unique challenges faced by patients with rare diseases, the Finance Minister announced that:

• Seven additional rare diseases will be added for the purpose of exempting import duties

This exemption will apply to:

• Drugs and medicines
• Food for Special Medical Purposes (FSMP)
• Items imported for personal use in treatment

The move aligns with India’s broader rare disease policy framework and significantly lowers treatment costs for families who often rely on expensive imported therapies.

Ease of Living Through Health-Centric Policy Design

Together, the customs duty rationalisation and healthcare exemptions underline the government’s commitment to Ease of Living through compassionate fiscal policy. By lowering import duties and exempting essential medical products, Budget 2026 attempts to make healthcare more affordable without compromising regulatory oversight.

These steps are particularly relevant as medical inflation continues to rise globally.

Increase in Stock Transaction Tax (STT): A Market Balancing Act

Alongside citizen-focused relief, the Finance Minister also announced revisions in Stock Transaction Tax (STT), particularly impacting the derivatives segment.

Revised STT Rates Proposed

• STT on Futures: Increased to 0.05% from 0.02%
• STT on Options Premium: Increased to 0.15% from 0.1%
• STT on Exercise of Options: Increased to 0.15% from 0.125%

The changes reflect the government’s intention to address the rapid growth and high speculative activity in derivatives markets.

Why STT on Futures and Options Is Being Raised

The derivatives segment has witnessed explosive growth in recent years, driven by:

• High retail participation
• Low transaction costs
• Increased algorithmic and short-term trading

By increasing STT on futures and options, the government aims to:

• Discourage excessive speculative trading
• Promote market stability
• Ensure fair contribution from high-frequency trading activity

While the hike may marginally increase trading costs, it is expected to primarily impact high-volume traders rather than long-term investors.

Market Implications of the STT Hike

Market participants are likely to see:

• Higher transaction costs for intraday and derivatives traders
• Potential moderation in excessive volumes
• Improved revenue mobilisation for the government

At the same time, the continued attractiveness of India’s equity markets is unlikely to be materially impacted, as STT remains competitive compared to global transaction levies.

Balancing Citizen Relief and Market Discipline

Budget 2026’s Ease of Living measures demonstrate a dual-track policy approach:

• Relief and compassion for individuals, patients, and families through customs duty cuts and medical exemptions
• Discipline and rationalisation in financial markets through calibrated STT increases

This balance reflects the government’s broader philosophy of inclusive growth while maintaining fiscal and market integrity.

How These Measures Fit Into the Budget 2026 Vision

The Ease of Living proposals align with larger Budget 2026 objectives:

• Simplifying tax and duty structures
• Reducing compliance friction for citizens
• Targeting welfare where it is most needed
• Ensuring sustainable revenue mobilisation

By addressing everyday concerns—healthcare costs, personal imports, and market fairness—the Budget reinforces its people-centric narrative.

Conclusion

Union Budget 2026 places Ease of Living at the forefront of policy-making. Finance Minister Nirmala Sitharaman’s proposals to halve customs duty on personal imports, exempt critical medicines and rare disease treatments, and rationalise Stock Transaction Tax on derivatives reflect a thoughtful blend of compassion, simplicity, and fiscal responsibility. As these measures are implemented, they are expected to ease daily financial burdens for citizens while strengthening the integrity of India’s financial markets.

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Disclaimer: This article is for informational and educational purposes only. Budget proposals and tax changes are subject to legislative approval, rules, and notifications. Readers are advised to consult qualified tax, legal, or financial professionals before making any decisions.