Parliament Winter Session: Sitharaman moves Bill to restore excise on tobacco as GST cess nears end
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Finance Minister Nirmala Sitharaman on Wednesday said the levy of excise on tobacco will ensure that incidence of tax on the demerit good remains same even after the expiry of the GST compensation cess.
Moving the Central Excise (Amendment) Bill, 2025, for discussion and passage in the Lok Sabha, Sitharaman said since the GST law caps maximum rate of tax at 40 per cent, the ultimate tax incidence on tobacco after removal of GST cess would come down from the current level if excise duty is not levied.
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“In order to ensure that the incidence is not lower than what it was during GST with the compensation cess, we are bringing this excise. In a way we are saying cigarettes should not become affordable now because incidence has become lesser,” the minister said.
The Bill proposes to replace the GST compensation cess which is currently levied on all tobacco products like cigarette, chewing tobacco, cigar, hookah, zarda, and scented tobacco. Currently a 28 per cent GST plus cess at varied rate is levied on tobacco.
Earlier, Lok Sabha took up the Question Hour without disruptions for the first time in the ongoing Winter session, a day after the logjam over the opposition's demand for a discussion on SIR was resolved.
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Since the session began on Monday, proceedings were disrupted by opposition members demanding a debate on the Special Intensive Revision (SIR) exercise ongoing in nine states and three Union territories. — with PTI
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See this yourself-
As the Parliamentary Affairs Minister of India, I am deeply hurt & ashamed by the behavior of Opposition MPs.
We may have differences but when it comes to India's image we should put aside all differences.
मैं, 'विपक्षी सांसदों' के व्यवहार से अत्यंत दुखी हूं।
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