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.