NEW DELHI: Finance Minister Nirmala Sitharaman on Thursday said the current tobacco tax regime will remain in place until the end of the month, and that the overall tax burden on the tobacco industry will largely stay unchanged under the new framework.

Speaking during the Rajya Sabha debate on the Central Excise (Amendment) Bill, 2025, Sitharaman said the tax incidence on bidis will remain unchanged. The House passed the Bill after the discussion. Also Read | As Centre moves to revamp tobacco taxes, states to benefit from excise duty hike

Under the new regime, tobacco products will attract the highest goods and services tax (GST) rate of 40%, up from the current 28%, she explained. With the GST compensation cess being replaced by the proposed Health Security and National Security

See Full Page