Decoded: Para-tariff phase out is set to go ahead but discrepancies with revenue targets remain
- Team Arutha
- Feb 10
- 1 min read
The para-tariff phase out proposed in Budget 2026 is set to go ahead this year despite discrepancies in revenue targets which forecasts growing revenue collections from Cess, Ports and Aviation Levy (PAL) and Special Commodity Levy (SCL)
Para-tariffs are tariffs on imports which are in addition to the standard Customs Duty and have been identified as a major blocker of export growth.
According to budget 2026 revenue estimates, the government hopes to collect 67% of all taxes from international trade through para-tariffs – Rs 177 billion from PAL, Rs 87 billion from Import Cess and Rs 145 billion from SCL.
This discrepancy remains unclarified, casting doubt on the ability to both phase out para-tariffs and achieve government revenue targets at the same time.
Refer the news article we decoded here:
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