NewzVille Desk
The Parliament on Thursday passed the Central Excise (Amendment) Bill, 2025 with the Upper House i.e the Rajya Sabha approving and returning it to the Lok Sabha.
The legislation is aimed to amend the Central Excise Act, 1944, specifically to raise excise duties and cess on tobacco products such as cigarettes, cigars, hookah tobacco, chewing tobacco, zarda and scented tobacco.
The amendment is required to give the government the fiscal space to increase the rate of central excise duty on tobacco and tobacco products so as to protect tax incidence, after the cess ends. Minister of State for Finance Pankaj Chaudhary moved the bill.
Replying to the discussion in Rajya Sabha, Finance Minister Nirmala Sitharaman stated that higher duties on cigarettes will be shared with the states. The Minister said this is not a cess but excise duty.
