Centre to Move Bill Revising Excise Rates on Tobacco Products

The Central government will on Tuesday push the Central Excise (Amendment) Bill, 2025 for consideration and passage in the Lok Sabha. Finance Minister Nirmala Sitharaman is scheduled to move the bill, which proposes changes to the Central Excise Act to raise excise duties and cess on tobacco and tobacco products.

After the rollout of GST in 2017, central excise duties on tobacco were reduced to make room for the GST compensation cess without significantly affecting the overall tax burden. With the compensation cess set to be discontinued once all related loan and interest liabilities are cleared, the government now seeks to revise excise rates to maintain tax stability on tobacco products.

Sitharaman introduced the bill in the Lok Sabha on Monday, even as Opposition MPs continued protesting and demanding a discussion on the Special Intensive Revision (SIR) of electoral rolls by the Election Commission of India.

According to the bill’s statement of objects and reasons, the Centre must amend the excise rate table in Section IV of the Fourth Schedule of the Act to ensure it has adequate fiscal space to increase duties on tobacco products once the compensation cess is phased out.

The government will also table two important reports of the Standing Committee on Finance, one reviewing the performance of the National Statistical Commission (NSC), and another assessing the functioning of the Insolvency and Bankruptcy Code and the new challenges emerging around it. These reports will be presented by MPs Bhartruhari Mahtab and Prabhakar Reddy Vemireddy.

Additionally, Commerce and Industry Minister Piyush Goyal will move a motion for the election of two members to the Rubber Board.

Monday’s Lok Sabha proceedings saw multiple adjournments, first until noon, then 2 pm, and finally for the day, as Opposition members continued their demand for a debate on SIR. The Rajya Sabha also witnessed sharp exchanges as the government proceeded with its legislative agenda.

Both Houses made obituary references and also congratulated the Indian Women’s Cricket Team for winning the ICC Women’s World Cup 2025, the Indian team for clinching the Women’s T20 Cricket World Cup for the Blind 2025, and the Women’s Kabaddi Team on their World Cup victory.

Amid loud sloganeering in the Lok Sabha, the Speaker urged members to avoid disruptions, reminding them that the House must set the right example through constructive debate. He also slammed the practice of entering the House with placards and obstructing proceedings in a coordinated manner.

Also Read: Chaos in Parliament: Opposition MPs Protest, Session Stalled Within 20 Minutes