Lok Sabha Passes Central Excise Amendment Bill 2025

The Lok Sabha passed a new law called the Central Excise (Amendment) Bill, 2025.

This law changes how taxes are collected on tobacco products.

Instead of the old GST compensation cess, there will now be higher central excise duties.

The Finance Minister, Nirmala Sitharaman, explained that this change will not increase the total tax burden on tobacco products.

The new law also aims to help tobacco farmers switch to growing other crops like pulses and oilseeds.

The taxes on different tobacco products, like cigarettes and chewing tobacco, will go up significantly.

This law is expected to make tobacco products more expensive, which might encourage people to use them less.

The government also assured that states will not lose out on revenue due to this change.