Budget 2025: Customs duty halved on carrier grade ethernet switches

In the Union Budget for 2025-26, Finance Minister Nirmala Sitharaman introduced a reduction in the basic customs duty (BCD) applicable to carrier grade ethernet switches from 20 per cent to 10 per cent.

"To prevent classification disputes, I propose to reduce the BCD from 20 per cent to 10 per cent on Carrier Grade Ethernet switches to make it at par with Non-Carrier Grade Ethernet switches," the Finance Minister stated during the budget speech.

The government has expected that non-tax revenue collection from the telecom sector to be about Rs 82,443 crore for FY26, almost 33 per cent lower than the current fiscal, according to the Budget documents.

Apart from this, reduction in personal income taxes has been also announced. "I am now happy to announce that there will be no income tax payable upto income of Rs 12 lakh under the new regime," Sitharaman stated.

"This limit will be Rs 12.75 lakh for salaried tax payers, due to standard deduction of Rs 75,000," she adds.

What is Basic Customs Duty?

BCD is a tax that the government charges on goods imported into the country.

Why are Carrier Grade Ethernet switches important for telcom cos?

These switches are high-quality networking devices used by telecom companies to manage internet and data traffic efficiently.