The Central Government has officially notified the Central Excise (Amendment) Act, 2025, after receiving Presidential assent on 11 December 2025, marking a significant update to the excise duty structure under the Central Excise Act, 1944. Published in the Gazette of India, the amendment introduces a comprehensive revision of duty rates across tobacco and nicotine-based products, reflecting the government's continued push for stricter taxation on tobacco consumption.
The most prominent change comes in the complete substitution of the Fourth Schedule, Section IV, which updates tariff items and imposes significantly higher excise duties. Unmanufactured tobacco, both stemmed and unstemmed, will now uniformly attract 70% excise duty, while tobacco refuse will be taxed at 60%.
The amendment also revises duty slabs for cigarettes, cigars, cigarillos, and biris, with cigarette duties now ranging from Rs. 2,700 to Rs. 11,000 per thousand sticks, depending on length and filter category.
Manufactured tobacco products have seen some of the steepest increases. Hookah tobacco and other water-pipe tobacco products will draw 40% excise duty, while smoking mixtures for pipes and cigarettes will attract a massive 325% duty. Chewing tobacco and jarda scented tobacco will now incur 100% excise duty, and several nicotine-based products-especially those intended for inhalation without combustion, are taxed at 100%, signalling a strong regulatory stance against emerging nicotine delivery mechanisms.
The amendment, classified as a Money Bill, will come into force on a date to be notified by the Central Government. With these revisions, India moves toward a more stringent taxation framework on tobacco and nicotine products, aligning with public health objectives and boosting excise revenue.
Official copy of the notificaiton has been attached
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