Finance Minister Jaswant Singh on Tuesday raised free baggage allowance from Rs12,000 to Rs 25,000 and announced reduction of customs duty on such baggage from 50 per cent to 40 per cent.

Announcing this in Lok Sabha while presenting the Interim Budget, Singh said it will substantially reduce congestion at the customs counters in arrival halls of international airports.

It will come into force with immediate effect, he said.