<h1>Tobacco tax overhaul replaces GST cess with a revised excise regime and specified duties on cigarettes, cigars and unmanufactured tobacco.</h1> The Central Excise (Amendment) Bill, 2025 replaces the GST compensation cess on tobacco with a revised excise regime: unmanufactured tobacco at 60-70% excise; cigars and cheroots at 25% or Rs 5,000 per 1,000 sticks (whichever is higher); cigarettes at Rs 2,700 per 1,000 sticks for lengths up to 65 mm without filters and Rs 4,500 per 1,000 sticks for lengths up to 70 mm, replacing the current 28% GST plus variable cess.