IndiaPosted at: Dec 4 2025 6:26PM


Central Excise Amendment Bill 2025 imposing steep hikes on Tobacco duties passed in Rajya Sabha

New Delhi, Dec 4 (UNI) The Central Excise (Amendment) Bill, 2025, which replaces the existing GST compensation cess on tobacco products with increased central excise duties got the Parliament nod after it was passed in the Rajya Sabha on Thursday.
The Lok Sabha had passed the legislation on Wednesday. The bill, introduced in the Lok Sabha on December 1, amends the Central Excise Act, 1944, to adjust tax rates while discontinuing the compensation cess once its liabilities are settled.
Since GST’s introduction in 2017, many central excise duties were repealed except for select items like tobacco, which remained subject to GST, compensation cess, and excise duty. The compensation cess was designed to offset revenue losses for the States.
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