Lok Sabha Passes Bill to Reinstate Central Excise Duty on Tobacco Ahead of GST Cess Phase-Out

Brief by Shorts91 Newsdesk / 02:52pm on 03 Dec 2025,Wednesday India

The Lok Sabha has passed the Central Excise (Amendment) Bill, 2025, enabling the government to levy central excise duties on tobacco and similar “sin goods” such as pan masala, ahead of the scheduled phase-out of the GST compensation cess. Under the new framework duties on such items will range broadly and specific taxes on cigarettes will depend on attributes like length and filter use. The move is designed to maintain high taxation on harmful goods, protect public health and preserve fiscal revenues once the existing cess ends. (PC: PTI)

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