• About us
  • Contact us
  • Our team
  • Terms of Service
Wednesday, December 3, 2025
Kashmir Images - Latest News Update
Epaper
  • TOP NEWS
  • CITY & TOWNS
  • LOCAL
  • BUSINESS
  • NATION
  • WORLD
  • SPORTS
  • OPINION
    • EDITORIAL
    • ON HERITAGE
    • CREATIVE BEATS
    • INTERALIA
    • WIDE ANGLE
    • OTHER VIEW
    • ART SPACE
  • Photo Gallery
  • CARTOON
  • EPAPER
No Result
View All Result
Kashmir Images - Latest News Update
No Result
View All Result
Home Latest News

Lok Sabha passes Bill to levy excise duty on tobacco

Press Trust of india by Press Trust of india
December 3, 2025
in Latest News
A A
0
FM proposes Rs 1.18 lakh cr interim Budget for J&K

File Photo

FacebookTwitterWhatsapp

New Delhi: Lok Sabha on Wednesday passed a law to levy a higher excise duty on tobacco and related products once the GST compensation cess ends.

The Central Excise (Amendment) Bill, 2025, was passed by a voice vote in the lower house.

More News

Effort made to rationalize reservation policy in line with promises to people: CM Omar Abdullah

New complex housing PMO to be called Seva Teerth

Age limit for govt jobs relaxed by Omar Govt

Load More

The Bill, once enacted, will give the government the fiscal space to increase the rate of central excise duty on tobacco and related products after GST compensation cess, which is currently levied on all tobacco products like cigarettes, chewing tobacco, cigars, hookah, zarda, and scented tobacco, ceases to exist.

Currently, a 28 per cent Goods and Services Tax (GST) plus cess at a varied rate is levied on tobacco and related products.

The bill proposes to levy an excise duty of 60-70 per cent on unmanufactured tobacco. Excise on cigars and cheroots is proposed at 25 per cent or Rs 5,000 per 1,000 sticks, whichever is higher.

Cigarettes, depending on length and filter, are proposed to be taxed in the range of Rs 2,700-Rs 11,000 per 1,000 sticks, while chewing tobacco is taxed at Rs 100 per kg.

The Bill seeks to substitute the table containing the tariff rates of tobacco and tobacco products in Section IV of the Fourth Schedule to the Central Excise Act, 1944.

When GST was introduced on July 1, 2017, the rates of Central Excise duties on tobacco and such products were reduced significantly to allow for the levy of compensation cess without a large impact on their tax incidence.

Compensation cess levied on tobacco and tobacco products will be discontinued once interest payment obligations and loan liabilities under the compensation cess account are completely discharged. ”

Finance Minister Nirmala Sitharaman said in the Lok Sabha: “In another, probably, couple of weeks the loans will be completely repaid.  The Centre, therefore, wants to make sure that the excise will come back to us so that we can levy the duty”.

At the time of the introduction of the GST on July 1, 2017, a compensation cess mechanism was put in place for five years till June 30, 2022, to make up for the revenue loss suffered by states on account of GST implementation.

The levy of compensation cess was later extended by four years till March 31, 2026, and the collection is being used to repay the Rs 2.69 lakh crore loan that the Centre took to compensate states for the GST revenue loss during the Covid period.

Previous Post

Rajasthan: Soldier dies after Army tank sinks in Indira Gandhi canal

Press Trust of india

Press Trust of india

Related Posts

Effort made to rationalize reservation policy in line with promises to people: CM Omar Abdullah

CM holds pre-budget consultations with stakeholders in tourism, industries, education
by KI News
December 3, 2025

Srinagar: Chief Minister Omar Abdullah on Wednesday said that an effort was made to rationalize the reservation policy in the...

Read moreDetails

New complex housing PMO to be called Seva Teerth

New complex housing PMO to be called Seva Teerth
by Press Trust of india
December 3, 2025

New Delhi:  The new complex housing the Prime Minister's Office (PMO) will be called 'Seva Teerth', officials said on Tuesday....

Read moreDetails

Age limit for govt jobs relaxed by Omar Govt

Want elected govt to handle law & order: MLA Tanvir Sadiq
by KI News
December 3, 2025

Srinagar: The Jammu and Kashmir government has approved relaxation in the upper age limit for recruitment to government jobs in...

Read moreDetails

Govt opens new flyover in Srinagar

Govt opens new flyover in Srinagar
by KI News
December 3, 2025

Srinagar: Jammu and Kashmir government on Tuesday threw open a new flyover that would ease traffic congestion in Srinagar city....

Read moreDetails

Govt has failed on all fronts: Mufti

Mehbooba questions ban on over 30 TV channels
by KI News
December 3, 2025

Srinagar: Peoples Democratic Party president Mehbooba Mufti on Tuesday asked the party cadres to coordinate with people and resolve their...

Read moreDetails

Northern Army commander underscores resolve of troops to keep J-K free from terror

Lt Gen Pratik Sharma takes over as Army’s Northern Commander
by Press Trust of india
December 2, 2025

Jammu: Northern Army Commander Lieutenant General Pratik Sharma reviewed the counter-terrorism grid in Kishtwar and Udhampur, and called for maintaining...

Read moreDetails
  • About us
  • Contact us
  • Our team
  • Terms of Service
E-Mailus: kashmirimages123@gmail.com

© 2025 Kashmir Images - Designed by GITS.

No Result
View All Result
  • TOP NEWS
  • CITY & TOWNS
  • LOCAL
  • BUSINESS
  • NATION
  • WORLD
  • SPORTS
  • OPINION
    • EDITORIAL
    • ON HERITAGE
    • CREATIVE BEATS
    • INTERALIA
    • WIDE ANGLE
    • OTHER VIEW
    • ART SPACE
  • Photo Gallery
  • CARTOON
  • EPAPER

© 2025 Kashmir Images - Designed by GITS.