The Government of India on December 11, 2025 notified that the Central Excise (Amendment) Act, 2025 has received the assent of the President of India on 11th December 2025 and has been published in the Gazette of India for general information.
The Act seeks to further amend the Central Excise Act, 1944, with specific changes to Section IV of the Fourth Schedule, relating primarily to tobacco and tobacco products. The amendment aligns the excise tariff structure with current public health priorities and revenue considerations.
Key Features of the Amendment
- Revised Tariff Table for Tobacco and Related Products
The Fourth Schedule has been substituted with an updated tariff table, covering:
- Unmanufactured tobacco, both stemmed and unstemmed (Tariff item 2401), prescribed with 70% duty across most categories.
- Tobacco refuse (2401 30 00) now attracting 60% duty.
- Cigars, cheroots, cigarillos and cigarettes (2402) with revised ad valorem or specific rates, such as:
- Cigars and cheroots: 25% or ₹5,000 per thousand, whichever is higher.
- Cigarettes in various size categories with updated specific rates (₹2,700 to ₹11,000 per thousand).
- Manufactured tobacco (2403), including hookah tobacco, smoking mixtures, biris, chewing tobacco, snuff, jarda, and extracts, with duty rates ranging from 10% to 325% depending on product type.
- Products containing tobacco or nicotine intended for inhalation without combustion (2404) with duties up to 100%, while certain items (for oral, transdermal applications) remain to be notified
- Scope and Implementation
- The Act will come into force on a date to be notified by the Central Government in the Official Gazette.
- The revised tariff structure aims to ensure greater clarity, uniformity, and enforcement efficiency concerning excise duties on tobacco and nicotine-related products.
- Certification as Money Bill
The Speaker of the House has certified the Amendment Bill as a Money Bill under Article 110 of the Constitution of India, as recorded in the Gazette notification.
- Legislative Background
The Bill (No. 143-F of 2025) was passed by both Houses of Parliament prior to receiving Presidential assent. It constitutes Act No. 34 of 2025.
The legislation reflects the Government’s ongoing efforts to strengthen excise administration, discourage the use of harmful tobacco products, and streamline classification under the Central Excise Act, 1944.
The Central Excise (Amendment) Act, 2025 can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/12/THE-CENTRAL-EXCISE-AMENDMENT-ACT-2025.pdf
