Tobacco tax regime change by end of December: Sitharaman

Finance Minister Nirmala Sitharaman on Thursday said the current tobacco tax regime will remain in place until the end of the month, and that the overall tax burden on the tobacco industry will largely stay unchanged under the new framework.

- Gireesh Chandra Prasad

Union finance minister Nirmala Sitharaman.

(PT)

Speaking during the Rajya Sabha debate on the Central Excise (Amendment) Bill, 2025, Sitharaman said the tax incidence on bidis will remain unchanged. The House passed the Bill after the discussion.

The minister noted that India’s total tax on tobacco products remains below the World Health Organization's (WHO) benchmark and emphasized that the government does not plan to lower taxes on this so-called “sin good”.