LS passes Excise Bill 2025 to raise excise duties and cess on tobacco products

The Lok Sabha has passed the Central Excise (Amendment) Bill, 2025. The proposed law aimed to amend the Central Excise Act, 1944, specifically to raise excise duties and cess on tobacco products such as cigarettes, cigars, hookah tobacco, chewing tobacco, zarda and scented tobacco. The Act provides for the levy and collection of central excise duties on goods manufactured or produced in the country. The Bill aims to revise the rate of central excise duty on tobacco and tobacco products to keep taxes on these products at the existing level. The Bill increases central excise duty on unmanufactured tobacco, manufactured tobacco, tobacco products, and tobacco substitutes. The amendment is required to give the government the fiscal space to increase the rate of central excise duty on tobacco an