The Central government will on Tuesday move the Central Excise (Amendment) Bill, 2025, for consideration and passing in the Lok Sabha. Union Finance Minister Nirmala Sitharaman is scheduled to move the bill to amend the Central Excise Act, 1944, with the objective of increasing excise duties and cess on tobacco products.
After the introduction of the Goods and Services Tax (GST) regime in 2017, the Centre had substantially reduced central excise duties on tobacco and tobacco products to enable the imposition of compensation cess under GST without causing a significant increase in overall tax incidence on consumers. The present bill now seeks to revise those central excise rates upward because the compensation cess is slated to be discontinued once all loan liabilities and interest payment obligations taken under the cess are fully discharged, the government has stated.
On Monday, Finance Minister Nirmala Sitharaman tabled the bill in the Lok Sabha amid persistent Opposition sloganeering demanding an immediate discussion on the Special Intensive Revision (SIR) of electoral rolls being conducted by the Election Commission of India.
The legislation amends the Central Excise Act, 1944, under which both the compensation cess to states and the basic central excise duties on sin goods had been significantly lowered at the time of GST rollout to keep the total tax burden stable.
“Compensation cess levied on tobacco and tobacco products, wherever applicable, will be discontinued once interest payment obligations and loan liabilities under the compensation cess account are completely discharged. In order 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, it is imperative to amend the table in Section IV of the Fourth Schedule to the said Act,” the bill’s ‘Statement of Objects and Reasons’ reads.
In addition, the government will table two reports of the Standing Committee on Finance in the House: the Twenty-seventh Report on the “Performance Review of National Statistical Commission (NSC)” and the Twenty-eighth Report on “Review of Working of Insolvency and Bankruptcy Code and Emerging Issues.” MPs Bhartruhari Mahtab and Prabhakar Reddy Vemireddy will present these two reports. Union Minister of Commerce and Industry Piyush Goyal will move a motion for the election of two members to the Rubber Board.
Also Read: LS adjourned for day amid opposition uproar on first day
Earlier on Monday, the first day of the Winter Session, the Lok Sabha witnessed multiple adjournments and heated exchanges between the government and treasury benches and the Opposition, even as the government pressed ahead with its legislative business. The House was first adjourned till 12 noon, then till 2 pm, and finally for the day, as Opposition members continued to press for a discussion on the Special Intensive Revision (SIR) of electoral rolls. Both Houses also observed obituary references.
The Lok Sabha and Rajya Sabha congratulated the Indian Women’s Cricket Team for winning the ICC Women’s World Cup 2025, the Indian Team for winning the Women’s T20 Cricket World Cup for the Blind 2025, and the Indian team for winning the Women’s Kabaddi World Cup 2025.
Amid continued sloganeering in the Lok Sabha, the Speaker urged Opposition members not to resort to disruptions, emphasising that a good tradition should be set by the House and that issues must be discussed properly. He stated that bringing placards and obstructing proceedings of the House in a planned manner was not right.
Also Read: Modi offers 'tips': Opposition must deliver in Parliament
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