Heavy taxes and duties on food products and daily use essentials are expected to remain in place in the upcoming Budget 2026-27, with the government continuing to collect substantial levies on a wide range of basic commodities.
According to official documents, white crystalline sugar is currently subject to a 20 per cent customs duty and an additional 4 per cent customs duty. An 18 per cent sales tax is also being charged on vegetable ghee, cooking oil, tea, sugar, powdered milk, processed food items, electricity and gas.
The documents further show that a 1 per cent sales tax is being imposed on various categories of medicines.
Chicken imports are subject to a 20 per cent customs duty along with an additional 4 per cent customs duty. Eggs continue to face customs duties ranging from 3 per cent to 16 per cent, in addition to applicable regulatory duties.
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Similarly, potatoes are subject to a 20 per cent regulatory duty, while tomatoes and onions are taxed at a customs duty rate of 5 per cent each.
The government is also collecting a 10 per cent customs duty on wheat and rice, while wheat flour remains subject to a 5 per cent customs duty.
According to the documents, crude soybean oil is taxed at Rs10,500 per metric ton in customs duty along with an additional 2 per cent customs duty. Vegetable oil carries a customs duty of Rs10,800 per metric ton and a 10 per cent regulatory duty.
Crude cooking oil is subject to a customs duty of Rs8,000 per metric ton, in addition to a 2 per cent additional customs duty.
The figures indicate that despite discussions on tariff rationalisation in the upcoming budget, significant taxes and duties on essential food items and household commodities are likely to remain in effect.
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