New Delhi, 4 December (H.S.): Minister of State for Finance Pankaj Chaudhary on Thursday introduced the Central Excise (Amendment) Bill, 2025 in the Rajya Sabha for consideration. The Lok Sabha had cleared the legislation a day earlier, paving the way for debate in the Upper House.

The Bill seeks to amend the existing central excise structure by introducing a revised excise duty on tobacco products, including cigarettes, cigars, zarda, and khaini. Once passed by both Houses of Parliament, the proposed amendment will replace the current Goods and Services Tax (GST) compensation cess on these products with an enhanced central excise duty.

Officials clarified that the move aims to maintain a comparable tax burden on tobacco products even after the expiry of the GST compensation cess regime, which was implemented in 2017 to offset states’ revenue losses following the introduction of GST.

The compensation period for states is scheduled to conclude in 2025, prompting the government to propose this amendment to sustain revenue levels while ensuring continuity in the taxation framework for tobacco products.

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Hindusthan Samachar / Jun Sarkar