The year 2025 has proved to be a big turning point for India’s tax system. The government has made important reforms in Income Tax, GST and Customs Duty. The new Income Tax Act, 2025, which will come into effect from April 1, will now replace the old law of 1961, which aims to make compliance easier. The middle class got a big relief in Budget 2025, where zero tax was fixed on income up to Rs 12 lakh, which increased disposable income and consumption.

GST rates were reduced on 375 items from September 22 and the slabs were simplified to 5% and 18%. This reduced litigation, although GST collection stood at Rs 1.70 lakh crore in November. Now the focus is on Customs Duty reforms, faceless assessment and digitalisation, which is expected to boost trade and investment.

India Pakistan Tensions: After the terrorist attack in Pahalgam in Jammu and Kashmir, Pakistan is being given a befitting reply by taking action from India. India’s steps such as the shutdown of air space for Pakistan, canceling the Indus Water Agreement, SAARC visa cancell and trade shutdown have made Pakistan breathless. In such a situation, Pakistan is now running vicious tricks to avoid the hungry dying, but now India has made its plan to turn this plans.

In fact, ever since the import of Pakistan’s goods has been banned, the Customs Department has been on high alert so that its goods can not be admitted to the Indian market through Islamabad in a third country such as Unite Arab Emirates (UAE), Singapore, Indonesia or Sri Lanka.

Pakistan’s waist will be broken further

Hindustan Times has quoted its sources in its reports as saying that an attempt is being made to send a package and label to India by packaging and label again in a third country on Pakistan’s fruits, dry fruits, clothes, black salt and other leather goods.

Reports have been reported that Pakistan has been completely banned on the arrival of goods, so the Government of India has issued an order to ban all kinds of direct or indirect goods from Islamabad on 2 May. Its purpose is to stop exports to Pakistan, because the condition of Pakistan’s economy is already very bad.

Shock on every front

Pakistan’s economy suffered the biggest setback when India snatched the status of Most Favored Nation (MFN) after the 2019 Pulwama attack. In this attack, there was a direct evidence of being in the hand of the neighboring country, in which many CRPF personnel were martyred.

After snatching the status of Most Favored Nation, India imposed a customs of 200 per cent on goods coming from Pakistan. Due to this, the goods being sent from across the border had come down significantly. Pakistan exported $ 23.9 million to India in 2020-21, which fell rapidly to just $ 0.42 million in the first 10 months of 2024-25.

The direct impact of the 200 per cent tariffs imposed on Pakistan was that the goods coming from there had almost completely braked, which was a major setback for the economy there. After this, Pakistan’s exports to India fell by 90 percent. The most impact of this was the horticulture, cement, black salt and cotton threads of Pakistan.

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