Parliament on Thursday (December 4, 2025) approved a Bill to levy a higher excise duty on tobacco and related products once the GST compensation cess ends, with the Rajya Sabha returning the legislation to the Lok Sabha.

The Lok Sabha passed the Central Excise (Amendment) Bill, 2025 on Wednesday (December 3).

Replying to a discussion on the Bill in the Rajya Sabha, Finance Minister Nirmala Sitharaman said this was not an additional tax, and the tax burden, as currently applicable under the GST regime, would continue.

She said that in the last GST Council, it was discussed in detail, and as was agreed earlier, that the compensation cess collection would probably come to a stop at the end of December.

"Let me assure here itself straight away that the tobacco products will still be taxed

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