Finance Minister Targets Customs Reform as Next Major Priority
Union Finance Minister Nirmala Sitharaman has officially flagged a comprehensive transformation of the nation’s customs framework as her next critical mission. While addressing a gathering at the HT Leadership Summit in New Delhi this Saturday, the Minister highlighted the urgent need to make trade regulations more transparent and less burdensome for the public.
Sitharaman was candid about the challenges ahead. She noted that while specific financial announcements are usually reserved for the budget, her focus on "cleaning up" the customs department is no secret. The primary objective is to simplify processes so that compliance does not feel like a punishment for citizens and businesses. She emphasized that India generally aligns its benchmarks with the World Customs Organisation, but domestic implementation needs to become far less cumbersome.
Drawing a sharp parallel to previous administrative changes, Sitharaman reflected on the evolution of the Income Tax Department. She pointed out that high tax rates were rarely the main issue; rather, the aggressive nature of tax administration had previously led to the infamous label of "tax terrorism." Through initiatives like faceless assessments, the government successfully reduced intimidation in that sector. Now, she intends to bring that same philosophy of trust and ease to the customs authority.
The Minister also addressed the issue of tariffs. She confirmed that while customs duties have been steadily lowered over the last two years, there is still work to be done. Goods that are currently taxed above optimal rates will see further reductions to encourage fair trade.
However, Sitharaman acknowledged that this overhaul comes with a unique challenge. The government must find a way to streamline the entry of goods without compromising security. The goal is to prevent the smuggling of contraband and illicit items while speeding up legitimate trade. To achieve this, the Finance Ministry is looking toward technology-driven solutions, such as comprehensive cargo scanning. This would minimize the need for physical interaction between customs officials and goods, thereby reducing human discretion and increasing overall efficiency.
