New Delhi, Dec. 1 -- The Centre is set to introduce two key bills in Parliament aimed at revising excise duties on tobacco products and levying a new cess on pan masala, as the GST compensation cess nears its expiry.

The Central Excise (Amendment) Bill, 2025 seeks to increase excise duties on tobacco and related items to preserve the current tax burden once the compensation cess is phased out.

A parallel proposal, the Health Security se National Security Cess Bill, 2025, introduces a new levy on pan masala and potentially other notified products to bolster resources for national security and public health.

As per the proposal, unmanufactured tobacco and tobacco refuse will attract an excise duty of 60-70 per cent, while cigars and cher...