- Introduced by Finance Minister Nirmala Sitharaman, it amends the Central Excise Act, 1944.
- Aim: To levy excise duty on tobacco products after the expiry of the GST compensation cess.
- Products covered: cigarettes, cigars, cheroots, hookah tobacco, chewing tobacco, zarda, scented tobacco.
- Duty rates: 60–70% on unmanufactured tobacco, slab‑based rates on cigarettes, ₹5,000/1000 sticks on cigars.
- 41% of excise revenue will go to stat es via the divisible pool.
- Significance: Ensures state revenue protection and keeps tobacco costly to discourage consumption.
Question:
Q.1 The Central Excise (Amendment) Bill, 2025, passed by the Lok Sabha, primarily aims to:a) Replace GST on tobacco products permanently
b) Levy excise duty on tobacco products after the expiry of GST compensation cess
c) Increase customs duty on imported tobacco
d) Abolish excise duty on unmanufactured tobacco
Answer: b) The bill amends the Central Excise Act, 1944 to levy excise duty on tobacco products after the GST compensation cess expires, ensuring continuity of revenue.
