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Central Excise (Amendment) Bill 2025: Sin Goods Tax Overhaul

2 December 20251 min read
ECONOMYCentral Excise(Amendment) Bill2025: Sin GoodsTax Overhaul2 December 2025safalsetu.com

Why in the news

An excise amendment bill and a cess bill were brought as the post-GST compensation cess nears its end.

Key facts

  • Tobacco items (cigarettes, cigars, chewing tobacco, hookah) will bear excise duty, not the compensation cess.
  • Pan masala and gutkha face a new cess.
  • Intent: keep taxes high, protecting revenue and curbing harmful use.

Exam angle

  • Compensation cess: reimburses states after GST.

Test yourself

1. Under the Central Excise (Amendment) Bill 2025, which new levy is proposed for pan masala and gutkha?

The bill brings a Health Security and National Security Cess for pan masala and gutkha.

2. The Central Excise (Amendment) Bill 2025 comes as which post-GST levy for compensating states nears its end?

The compensation cess was introduced to make up state revenue losses after GST and is ending.

3. What indicative duty per 1,000 sticks was mentioned for cigarettes under the Central Excise (Amendment) Bill 2025?

Cigarette duty could range from ₹5,000 to ₹11,000 per 1,000 sticks.

This topic is part of Daily Current Affairs 2 December 2025 (14 topics).

All topics of the dayDay quizDecember 2025

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