New Delhi, Dec. 12 -- The Government has notified the Central Excise (Amendment) Act, 2025, effecting a substantial increase in excise duties on unmanufactured tobacco, manufactured tobacco, tobacco products, and tobacco substitutes.

Under the Central Excise Act, 1944, excise duty on cigarettes ranges between 200 and 735 rupees per thousand sticks. The amended Act raises this range sharply to between 2,700 rupees and 11,000 rupees per thousand cigarettes.

The Act enhances excise duties and cess across products, including cigarettes, cigars, hookah tobacco, chewing tobacco, zarda and scented tobacco. It also grants the government fiscal space to raise central excise duty even after the cessation of the tobacco cess.

The new law also pre...