US EditionGovt to Introduce Central Excise Amendment Bill, 2025: What It Means for Tobacco and Pan Masala Prices?
The bills replace GST compensation cess to maintain tax rates on tobacco and pan masala, enabling targeted public health funding and national security contributions.
- Finance Minister Nirmala Sitharaman will list in the Lok Sabha two bills on Monday, including the Central Excise Amendment Bill, 2025 and the Health Security se National Security Cess Bill, 2025.
- Long ago, at GST introduction on July 1, 2017, a compensation cess was created to cover state revenue losses, extended until March 31, 2026, with collections repaying a central Covid loan that will finish sometime in December.
- Manufacturers must file self-declarations of machines or processes for each factory or premises, with cess calculated per location, and the new cess will be additional to other duties while the government may notify other goods for levy.
- The bills aim to preserve tax incidence and provide fiscal space, with the Health Security se National Security Cess funding targeted public health utilisation and national security purposes, per the Bill's statement of objects and reasons.
- Under recent GST changes, sin goods move to the highest GST slab of 40%, aligning with ultra-luxury items and aerated drinks, while GST rationalisation ended the cess on luxury items at 5 and 18 per cent.
13 Articles
13 Articles
Govt to introduce Central Excise Amendment Bill, 2025: What it means for tobacco and pan masala prices?
As Parliament introduces new bills to replace the GST compensation cess on tobacco and pan masala, significant tax changes loom. Will these measures maintain current prices, or will they reshape the market landscape? Discover the implications of these legislative moves on consumers and revenue.
Parliament Winter Session 2025 Begins Today; Nirmala Sitharaman To Move Bill for New Cess on Tobacco and Pan Masala | 🗳️ LatestLY
The government has lined up a heavy legislative agenda, with at least 13 bills set to be introduced, including major economic and national security–related proposals. At the same time, the Opposition is preparing to mount pressure on the government over the SIR issue, national security concerns, and several other pending matters. 🗳️ Parliament Winter Session 2025 Begins Today; Nirmala Sitharaman To Move Bill for New Cess on Tobacco and Pan Masa…
Pan Masala, Gutka Costs Set To Rise As Govt Plans New Cess For Nationwide Safety, Public Well being
NEW DELHI: After a ‘sin tax’ on tobacco-related gadgets through the GST rationalisation train, Finance Minister Nirmala Sitharaman on Monday launched ‘Wholesome Safety se Nationwide Safety Cess Invoice, 2025’, within the Lok Sabha. The Invoice proposed a rigorous new tax regime on pan masala and gutkha producers to fund defence and public well being expenditures. In accordance with the Invoice, the proposed cess can be levied on machines put in …
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