New Delhi/IBNS, Dec. 29 -- Cigarette prices in India are poised for a dramatic surge after Parliament passed the Central Excise (Amendment) Bill, 2025, paving the way for one of the steepest tax hikes ever imposed on tobacco products.

The legislation, introduced by Minister of State for FinancePankaj Chaudhary, seeks to comprehensively revise excise duties and cess across a wide range of tobacco products, including cigarettes, cigars, hookah tobacco, chewing tobacco, zarda and scented tobacco.

The Rajya Sabha cleared the bill and returned it to the Lok Sabha, completing the parliamentary process.

At the heart of the amendment is a sharp escalation in cigarette excise duties.

Under the existing Central Excise Act, 1944, cigarettes attr...