Lok Sabha has taken up the Central Excise (Amendment) Bill, 2025 for consideration and passing. The Bill seeks to amend the Central Excise Act, 1944. The Act provides for the levy and collection of central excise duties on goods manufactured or produced in India. The Bill aims to revise the rate of central excise duty on tobacco and tobacco products to keep taxes on these products at the existing level. The Bill increases central excise duty on unmanufactured tobacco, manufactured tobacco, tobacco products, and tobacco substitutes. Union Finance Minister Nirmala Sitharaman moved the Bill in the lower House.
Initiating the discussion, Dr D Purundeswari said that Tobacco addiction is a major problem in the country as an estimated 1.35 million deaths occur annually due to cancer, heart and lungs related diseases. She said, India accounts for almost one-sixth of the world’s tobacco related deaths. The Bill will maintain the price stability of tobacco products and act as a deterrent and protect the vulnerable and youth of the society by discouraging them. The legislation will also not affect the States’ revenues as the 42 per cent share of Central tax devolution that goes to the States would stand as it is .
Karti P Chidambaram of Congress said that tobacco has a huge cost on the nation, as the economic loss, due to the use of tobacco products is nearly two lakh crore rupees annually. He also said that it is wrong to think that the increase in prices on sin products like tobacco products will help lower its consumption, because people will find other alternatives. He said, there is a need to work on a holistic plan to address the tobacco uses and to migrate those engaged in the tobacco sector to other sectors.
Naresh Chandra Uttam Patel of Samajwadi Party demanded the government to refer the bill to the Standing Committee as the legislation will impact the tobacco growers.
