TaxTMI 
TaxTMI 
THE CENTRAL EXCISE (AMENDMENT) BILL, 2025
X X X X Extracts X X X X
X X X X Extracts X X X X
....HE CENTRAL EXCISE (AMENDMENT) BILL, 2025 <br>News and Press Release<br>Dated:- 2-12-2025<br><BR>THE CENTRAL EXCISE (AMENDMENT) BILL, 2025 ============= Document 1 AS INTRODUCED IN LOK SABHA Bill No. 143 of 2025 THE CENTRAL EXCISE (AMENDMENT) BILL, 2025 A BILL further to amend the Central Excise Act, 1944. BE it enacted by Parliament in the Seventy-sixth Year of the Republic of India 1. (1) This Act may be called the Central Excise (Amendment) Act, 2025. as follows :- Short title and commencement. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. 5 2 2. In the Central Excise Act, 1944, in the Fourth Schedule, in Section IV, for the Table occurring under the sub....
X X X X Extracts X X X X
X X X X Extracts X X X X
....-heading "Supplementary Notes", the following Table shall be substituted, namely :- 1 of 1944. Amendment of Fourth Schedule. 'TariffitemDescription of goodsUnitRate of duty (1)(2)(3)(4)in 5 2401Unmanufactured Tobacco; Tobacco Refuse 2401 10- Tobacco, not stemmed or stripped: 2401 10 10Flue cured virginia tobaccokg.70% 2401 10 20Sun cured country (natu) tobaccokg.70% 2401 10 30Sun cured virginia tobaccokg.70%10 2401 10 40-- Burley tobaccokg.70% 2401 10 50Tobacco for manufacture of biris, not stemmedkg.70% 2401 10 60Tobacco for manufacture of chewing tobaccokg.70%15 2401 10 70Tobacco for manufacture of cigar and cherootkg.70% 2401 10 80Tobacco for manufacture of hookah tobaccokg.70% 2401 10 90Otherkg.70%20 2401 20- Tobacco, partly or wholl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y stemmed or stripped: 2401 20 10Flue cured virginia tobaccokg.70% 2401 20 20Sun cured country (natu) tobaccokg.70% 2401 20 30Sun cured virginia tobaccokg.70% 2401 20 40Burley tobaccokg.70%25 2401 20 50Tobacco for manufacture of biriskg.70% 2401 20 60Tobacco for manufacture of chewing tobaccokg.70% 2401 20 70Tobacco for manufacture of cigar and cherootkg.70%30 2401 20 80Tobacco for manufacture of hookah tobaccokg.70% 2401 20 90Otherkg.70% 2401 30 00- Tobacco refusekg.60% 2402Cigars, cheroots, cigarillos and cigarettes, of tobacco or of 35 tobacco substitutes 2402 10- Cigars, cheroots and cigarillos, containing tobacco: 2402 10 10--- Cigar and cherootsTu25% or Rs. 5000 per Rs. 5000 per thousand 40 whichever is higher 3 (1)(2)(3)(4) 52402 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....10 20 ---CigarillosTu25% or Rs. 5000 per thousand whichever is higher 2402 20 -Cigarettes, containing tobacco: 2402 20 10-- Other than filter cigarettes, of length not exceeding 65 millimetresTuRs. 2700 per thousand 102402 20 20Other than filter cigarettes, of length exceeding 65 millimetres but not exceeding 70 millimetresTuRs. 4500 per thousand 152402 20 30--- Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 65 millimetresTuRs. 3000 per thousand 202402 20 40-- Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 65 millimetr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es but not exceeding 70 millimetresTuRs. 5200 per thousand 252402 20 50-- Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 70 millimetres but not exceeding 75 millimetresTuRs. 7000 per thousand 302402 20 90--- OtherTuRs. 11000 per thousand 2402 90 -Other: 352402 90 10--- Cigarettes of tobacco substitutesTuRs. 5000 per thousand 402402 90 20--- Cigarillos of tobacco substitutesTu14% or Rs. 5000 per thousand whichever is higher 452402 90 90--- OtherTu14% or Rs. 5000 per thousand whichever is higher 4 (1)(2)(3)(4) 2403Other manufactured tobacco and manufactured tobacco substitutes; "Homogenised" or "Reconstituted" tobacco; Tobacco extr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....acts and essences -Smoking tobacco, whether or not containing tobacco 5 substitute in any proportion; 2403 11Water pipe tobacco specified in Sub-heading Note to this Chapter: 2403 11 10Hookah or gudaku tobaccokg.40% 2403 11 90Otherkg.40%10 2403 19Other: 2403 19 10Smoking mixtures for pipes and cigaretteskg.325% Biris: 2403 19 21Other than paper rolled biris, manufactured without the aid of machineTu 10%15 2403 19 29OtherTu10% 2403 19 90Otherkg.22% -Other:20 2403 91 00--"Homogenised" or "reconstituted" tobaccokg.70% 2403 99--Other: 2403 99 10Chewing tobaccokg.100% 2403 99 20Preparations containing chewing tobaccokg.100%25 2403 99 30Jarda scented tobaccokg.100% 2403 99 40Snuffkg.70% 2403 99 50--Preparations containing snuffkg.70% 2403 99 60To....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bacco extracts and essencekg.70%30 2403 99 70Cut-tobaccokg.10% 2403 99 90Otherkg.125% Products containing tobacco, reconstituted tobacco, nicotine, or tobacco or nicotine substitutes, intended for inhalation without combustion; other nicotine containing products intended for the intake of nicotine into the human body 2404 35 - Products intended for inhalation without combustion 5 (1)(2)(3)(4) 2404 11 00-- Containing tobacco or reconstituted tobaccokg.100% 2404 12 00-- Other, containing nicotinekg. 2404 19 00-- Otherkg.100% - Other: 2404 91 00-- For oral applicationkg... 2404 92 00-- For transdermal applicationkg... 2404 99 00-- Otherkg.’ .. . 5 6 STATEMENT OF OBJECTS AND REASONS With the introduction of the Goods and Servic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es Tax (GST) on 1st July, 2017, the Central Excise Act, 1944 was repealed by section 174 of the Central Goods and Services Tax Act, 2017, except in respect of goods listed under Entry 84 of List I of the Seventh Schedule to the Constitution. This includes tobacco and tobacco products. With the levy of GST and compensation cess on tobacco and tobacco products, the rates of Central Excise duties were reduced significantly to allow for the levy of compensation cess without large impact on their tax incidence. 2. 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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. 3. Accordingly, it is proposed to introduce the Central Excise (Amendment) Bill, 2025 in Parliament to substitute the table containing the tariff rates of tobacco and tobacco products in Section IV of the Fourth Schedule to the Central Excise Act, 1944. 4. The Bill seeks to achieve the above objectives. NIRMALA SITHARAMAN. NEW DELHI; The 28th November, 2025. 6 7 FINANCIAL MEMORANDUM The Bill, if enacted, will not involve any expenditure, either recurring or non-recurring in nature, from the Consolidated ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Fund of India. 7 ANNEXURE EXTRACT FROM THE CENTRAL EXCISE ACT, 1944 * * * * * CHAPTER IV TRANSPORT BY SEA THE FOURTH SCHEDULE [Refer section 2(d) and 2(f)(ii)] * SECTION IV * * * * TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES; PRODUCTS, WHETHER OR NOT CONTAINING NICOTINE, INTENDED FOR INHALATION WITHOUT COMBUSTION, OTHER NICOTINE CONTAINING PRODUCTS INTENDED FOR THE INTAKE OF NICOTINE INTO THE HUMAN BODY * * * * * SUPPLEMENTARY NOTES * * * * * ‘TariffitemDescription of goodsUnitRate of duty (1)(2)(3)(4) 2401Unmanufactured Tobacco; Tobacco Refuse 2401 10- Tobacco, not stemmed or stripped: 2401 10 10--Flue cured virginia tobaccokg.64% 2401 10 20Sun cured country (natu) tobaccokg.64% 2401 10 30Sun cured virginia ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tobaccokg.64% 2401 10 40Burley tobaccokg.64% 2401 10 50--Tobacco for manufacture of biris, not stemmedkg.64% 2401 10 60Tobacco for manufacture of chewing tobaccokg.64% 2401 10 70--Tobacco for manufacture of cigar and cherootkg.64% 2401 10 80Tobacco for manufacture of hookah tobaccokg.64% 2401 10 90Otherkg.64% 2401 20- Tobacco, partly or wholly stemmed or stripped: 2401 20 10Flue cured virginia tobaccokg.64% 2401 20 20Sun cured country (natu) tobaccokg.64% 2401 20 30Sun cured virginia tobaccokg.64% 2401 20 40--Burley tobaccokg.64% 8 9 (1)(2)(3)(4) 2401 20 50---Tobacco for manufacture of biriskg.64% 2401 20 60Tobacco for manufacture of chewing tobaccokg.64% 2401 20 70Tobacco for manufacture of cigar and cherootkg.64% 2401 20 80Tobacco for ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....manufacture of hookah tobaccokg.64% 2401 20 90Otherkg.64% 2401 30 00-Tobacco refusekg.50% 2402 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes 2402 10 - Cigars, cheroots and cigarillos, containing tobacco: 2402 10 10--- Cigar and cherootsTu12.5% or Rs. 4006 per thousand, whichever is higher 2402 10 20--- CigarillosTu12.5% or Rs. 4006 per thousand, whichever is higher 2402 20 -Cigarettes, containing tobacco: 2402 20 10--- Other than filter cigarettes, of length not exceeding 65 millimetresTuRs 200 per thousand 2402 20 20Other than filter cigarettes, of length exceeding 65 millimetres but not exceeding 70 millimetresTuRs 250 per thousand 2402 20 30-- Filter cigarettes of length (including the length of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 65 millimetresTuRs 440 per thousand 2402 20 40-- Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 65 millimetres but not exceeding 70 millimetresTuRs 440 per thousand 2402 20 50--- Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 70 millimetres but not exceeding 75 millimetresTuRs 545 per thousand 10 (1)(2)(3)(4) 2402 20 90--- OtherTuRs. 735 per thousand 2402 90 -Other: 2402 90 10--- Cigarettes of tobacco substitutesTu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Rs. 600 per thousand 2402 90 20--- Cigarillos of tobacco substitutesTu12.5% or Rs. 4006 per thousand, whichever is higher 2402 90 90--- OtherTu12.5% or Rs. 4006 per thousand, whichever is higher 2403 Other manufactured tobacco and manufactured tobacco substitutes; "Homogenised" or "Reconstituted" tobacco; Tobacco extracts and essences - Smoking tobacco, whether or not containing tobacco substitute in any proportion; 2403 11Water pipe tobacco specified in Chapter:Sub-headingNote to this 2403 11 10--Hookah or gudaku tobaccokg.25% 2403 11 90Otherkg.60% 2403 19--Other: 2403 19 10Smoking mixtures for pipes and cigaretteskg.60% Biris: 2403 19 21-Other than paper rolled biris, manufactured without the aid of machineTuRs. 1.00 per thousand ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2403 19 29OtherTuRs.2.00 per -thousand 2403 19 90---Otherkg.25% 2403 91 00--"Homogenised" or "reconstituted" tobaccokg.25% 2403 99--Other: 2403 99 10Chewing tobaccokg.25% 2403 99 20---Preparations containing chewing tobaccokg.25% 2403 99 30---Jarda scented tobaccokg.100% Water pipe tobacco specified in Chapter: 11 (1)(2)(3)(4) 2403 99 40--Snuffkg.25% 2403 99 50--Preparations containing snuffkg.25% 2403 99 60Tobacco extracts and essencekg.25% 2403 99 70Cut-tobaccokg.Rs. 70 per kg. 2403 99 90Otherkg.25% 2404Products containing tobacco, reconstituted tobacco, nicotine, or tobacco or nicotine substitutes, intended for inhalation without combustion; other nicotine containing products intended for the intake of nicotine into the human body - ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Products intended for inhalation without combustion 2404 11 00--Containing tobacco or reconstituted tobaccokg.81% 2404 12 00--Other, containing nicotinekg. 2404 19 00--Otherkg.81% -Other: 2404 91 00For oral applicationkg. 2404 92 00--For transdermal applicationkg. 2404 99 00--Otherkg.’ ..... . LOK SABHA A BILL further to amend the Central Excise Act, 1944. (Smt. Nirmala Sitharaman, Minister of Finance and Corporate Affairs)<BR> News - Press release - PIB....