Separately, it also withdrew the compensation cess on tobacco products from the same date. The Central Excise (Amendment) Act, 2025, proposes raising excise duty on tobacco products. Unlike cess proceeds, the Centre’s tax revenue receipts such as GST, income tax and excise duty are shared with the states. “WHO has affordability index of tobacco products. In the case of pan masala producers, the health and national security cess will be levied on their production capacity.

Source: Mint January 01, 2026 11:02 UTC