GST compensation cess
India's Parliament Approves Increased Tobacco Excise Duty Bill Aligning With WHO Standards
Dec 05, 2025 02:16 am CST
India's Parliament has approved the Central Excise Amendment Bill 2025, raising tobacco taxation from 53% toward WHO's recommended 75% benchmark. Finance Minister Nirmala Sitharaman confirmed the revenue will be shared with states while assuring support for tobacco farmers and beedi workers through existing welfare schemes and crop diversification programs.
India's New Taxation Framework: Replacing GST Compensation Cess with Excise Duties on Tobacco and Pan Masala
Dec 01, 2025 10:44 pm CST
Finance Minister Nirmala Sitharaman has introduced two new bills in the Lok Sabha aimed at restructuring taxes on tobacco and pan masala products after the scheduled phaseout of GST compensation cess. The Central Excise (Amendment) Bill and Health Security se National Security Cess Bill will maintain taxation levels on these "sin goods" while redirecting revenue toward public health initiatives and national security efforts.