India, Dec. 2 -- Finance Minister Nirmala Sitharaman on Monday introduced two bills in the Lok Sabha to levy excise duty on tobacco and tobacco products, and a new cess on the manufacturing of pan masala, which will replace the GST compensation cess on such sin goods.

The Central Excise (Amendment) Bill, 2025, will replace the GST compensation cess, which is currently levied on all tobacco products like cigarettes, chewing tobacco, cigars, hookahs, zarda, and scented tobacco.

The bill seeks "to give the Government the fiscal space to increase the rate of central excise duty on tobacco and tobacco products so as to protect tax incidence," once the GST compensation cess ends, according to the statement of objects and reasons of the bill....