New Delhi, Dec. 2 -- The Central government is set to move that the Central Excise (Amendment) Bill, 2025, for consideration and passing in the Lok Sabha on Tuesday. Union Finance Minister Nirmala Sitharaman is set to move the bill to amend the Central Excise Act in order to raise the excise duties and cess on tobacco products.

Following the introduction of GST in 2017, the Centre had decreased central excise duties on tobacco and tobacco products to allow for the levy of compensation cess in GST without large impact on tax incidence. This bill seeks to amend the central excise rates, as the cess will be discontinued once loan liabilities and interests payments taken under the cess are discharged, according to the government.

Earlier on...