US tariffs had no impact on customs duty overhaul: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Monday said that the ongoing customs duty overhaul has not been influenced by recent tariff actions taken by the United States, clarifying that the exercise has been underway for the last two years.

Speaking to reporters after the Union Budget announcements, Sitharaman said, “The customs duty overhauling exercise has been going on for the last two years. The US matter has had no influence on the Budget. Government has not made any assessment of the impact of US tariffs while finalising the proposals related to reductions in customs and central excise duties for select products.”

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Commenting on the Insolvency and Bankruptcy Code (IBC), the Finance Minister said, “the select committee report on the proposed IBC amendments has been reviewed.” She expressed hope that the amendments would be taken up in the second half of the ongoing Budget session.

Sitharaman also announced that the Prime Minister’s Internship Scheme will be relaunched, reiterating the government’s commitment to continue the programme.

She said private consumption is expected to remain strong and sustain economic momentum.

Addressing concerns over high-speed rail corridors, including the Ahmedabad–Mumbai bullet train project, the Finance Minister said funding is not a constraint. “Money will not be an issue for the high-speed rail corridors announced in the Budget. We don’t have a money problem for the bullet train either,” she said.

She clarified that delays in the Ahmedabad–Mumbai bullet train project were not due to financial reasons but political factors. “Money was neither a problem for the bullet train project nor for high-speed rail corridors,” Sitharaman added.

On the recent surge in gold and silver prices, Sitharaman said volatility in gold prices is driven by global uncertainties. She noted a natural global shift towards gold as confidence in individual currencies weakens.

“Central banks across the world are investing in gold and silver,” she said.

Defending the increase in Securities Transaction Tax (STT) on futures and options (F&O), the Finance Minister said the move aims to discourage excessive speculation.

She clarified that there was no direct government intervention in market operations and that the change would be notified as per procedure.

“F&O is a highly speculative market. Many parents have approached us saying their children are investing and losing money in F&O trading. Nearly 90 per cent of participants in F&O lose money,” Sitharaman said.

As per the Budget proposals, STT on F&O trades has been increased from 0.2 per cent to 0.5 per cent, while STT on futures has been raised to 0.05 per cent from 0.02 per cent of the total trade value.

The Finance Minister said the government’s intent is to protect retail investors from high-risk speculative losses while ensuring market stability.