STATE TIMES NEWS

NEW DELHI: Lok Sabha on Wednesday passed a law to levy a higher excise duty on tobacco and related products once the GST compensation cess ends.

The Central Excise (Amendment) Bill, 2025, was passed by a voice vote in the lower house.

The Bill, once enacted, will give the government the fiscal space to increase the rate of central excise duty on tobacco and related products after GST compensation cess, which is currently levied on all tobacco products like cigarettes, chewing tobacco, cigars, hookah, zarda, and scented tobacco, ceases to exist.

Currently, a 28 per cent Goods and Services Tax (GST) plus cess at a varied rate is levied on tobacco and related products.

The bill proposes to levy an excise duty of 60-70 per cent on unmanufactured tobacco. Excise on cigars

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