Mumbai, Dec. 4 -- The Lok Sabha has passed the Central Excise (Amendment) Bill, 2025, which allows the government to raise excise duty and cess on a wide range of tobacco products. Finance Minister Nirmala Sitharaman said the change is not a new tax but a shift from compensation cess back to excise duty, which existed before GST. She added that higher taxes have long been used as a deterrent to reduce tobacco use. The minister highlighted steady gains in public health spending and noted ongoing efforts to help farmers shift away from tobacco cultivation.

Members across parties flagged the heavy health and economic cost of tobacco. Some MPs, however, expressed concerns about the impact on growers and workers. The Bill significantly increa...