NEW DELHI, Dec 3: The Lok Sabha on Wednesday passed the Central Excise (Amendment) Bill, 2025, paving the way for the government to impose higher excise duty on tobacco and related products once the GST compensation cess is phased out.
The Bill was approved by a voice vote in the lower house.
Once enacted, the legislation will empower the Centre to revise and increase central excise duties on a range of tobacco products — including cigarettes, chewing tobacco, cigars, hookah, zarda and scented tobacco — after the existing GST compensation cess comes to an end. The move is expected to provide the government with greater fiscal flexibility and ensure continued revenue from tobacco taxation.
