The Lok Sabha on Wednesday (December 3) passed the Central Excise (Amendment) Bill, 2025, after Finance Minister Nirmala Sitharaman reiterated, “This is not a new law. This is not an additional tax. This is not something that the Centre is taking away,” during her reply to the discussion on the Bill.

She said 41% of the excise collected will reach the states through the divisible pool, emphasising that the levy is an excise and not a cess. The minister noted that states have asked for a 50% share in central taxes but said this is for the Finance Commission to decide. She added that all states have utilised the interest-free loans and that “no state will get lesser than what the Finance Commission decides.”

Sitharaman referred to Finance Commission Chair Arvind Panagariya’s June 2025 rema

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