Union Finance Minister Nirmala Sitharaman speaks in the Lok Sabha. (Source: PTI) Show Quick Read Summary is AI Generated. Newsroom Reviewed

The Lok Sabha passed the Central Excise (Amendment) Bill 2025 by a voice vote on Wednesday that will allow the government to levy a higher excise duty on tobacco and related products once the GST compensation cess ends.

The bill, introduced on Monday, amends the Central Excise Act, 1944, to adjust tax rates while discontinuing the compensation cess once its liabilities are settled.

The Central Excise (Amendment) Bill, 2025, will replace the existing GST compensation cess on cigarettes, chewing tobacco, cigars, hookah, zarda and scented tobacco with a revised excise structure.

Finance Minister Nirmala Sitharaman clarified that the bill does not

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