The Parliament on Thursday, December 4, passed the Central Excise (Amendment) Bill, 2025, paving the way to levy a higher excise duty on tobacco and related products once the GST compensation cess ends, despite sharp criticism from Opposition leaders.

Now cleared by both Houses, the Rajya Sabha has returned the Bill to the Lok Sabha as part of the legislative process.

Once enacted into law, it will allow the government to increase the rate of central excise duty on tobacco and related products after the GST compensation cess ends.

Tobacco and related products, at present, have a 28% goods and services tax (GST) plus cess at a varied rate.

The Bill proposes an excise duty of 60-70% on unmanufactured tobacco while excise on cigars and cheroots is proposed at 25% or ₹ 5,000 per 1,000 st

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