• About us
  • Contact us
  • Our team
  • Terms of Service
Tuesday, June 9, 2026
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 BUSINESS

Lok Sabha passes Bill to levy excise duty on tobacco

Press Trust of india by Press Trust of india
December 3, 2025
in BUSINESS
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

Govt cuts subsidised LPG cylinders to Ujjwala beneficiaries to 4

Eight workers killed in Vizag Steel Plant as molten iron spills

LPG Price Hike: Govt says rates in India among world’s lowest despite 46% jump in global benchmark

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

Next Post

‘Lie, WhatsApp university story’: Congress slams Rajnath for ‘Nehru-Babri mosque’ claim

Press Trust of india

Press Trust of india

Related Posts

Govt cuts subsidised LPG cylinders to Ujjwala beneficiaries to 4

Niti Aayog working on proposal ‘to replace LPG subsidy with cooking subsidy’
June 8, 2026

New Delhi:  The government has reduced the number of subsidised cooking gas cylinders available annually to beneficiaries of its flagship...

Read moreDetails

Eight workers killed in Vizag Steel Plant as molten iron spills

   Two killings/deaths in J&K, people want answers
June 8, 2026

Visakhapatnam: At least eight workers of the Rashtriya Ispat Nigam Ltd (Vizag Steel Plant) were killed and six others injured...

Read moreDetails

LPG Price Hike: Govt says rates in India among world’s lowest despite 46% jump in global benchmark

Niti Aayog working on proposal ‘to replace LPG subsidy with cooking subsidy’
June 7, 2026

New Delhi: Indian households continue to pay among the lowest prices for cooking gas globally despite a sharp rise in...

Read moreDetails

Why aren’t BJP leaders taking to streets with cylinders in protest now: Cong’s dig on LPG price hike

Will ask PAC to call AG, CAG to know when was CAG report on Rafale tabled in Parl: Kharge
June 7, 2026

New Delhi:  The Congress on Sunday launched a scathing attack on the Modi government over domestic LPG price hike, asking...

Read moreDetails

India’s space economy can expand to USD 45 billion over next 7-8 years: Jitendra Singh

June 7, 2026

New Delhi:  India's space economy, currently close to USD 9 billion, is expected to expand to about USD 45 billion...

Read moreDetails

LPG price hiked by Rs 29 per 14.2-kg cylinder

Niti Aayog working on proposal ‘to replace LPG subsidy with cooking subsidy’
June 7, 2026

New Delhi: Domestic cooking gas LPG price has been raised by Rs 29 per cylinder, marking the second increase in...

Read moreDetails
Next Post
BJP using J&K to stir emotions in country, Congress will restore statehood: Priyanka Gandhi

'Lie, WhatsApp university story': Congress slams Rajnath for 'Nehru-Babri mosque' claim

  • 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.