New Delhi: Parliament has approved a key bill to increase excise duty on tobacco products, including cigarettes, as part of the government’s efforts to strengthen public health measures and boost revenue.
During the discussion in the Rajya Sabha, Union Finance Minister Nirmala Sitharaman clarified that the additional revenue generated from the increased duty would be shared with the states, ensuring that both the Centre and state governments benefit from the revised taxation structure.
Sitharaman said the decision aligns with long-standing recommendations from health experts and global agencies urging India to curb tobacco consumption through stronger fiscal measures. She also emphasized that higher excise duties would support initiatives aimed at reducing smoking rates while simultaneously adding to government funds for welfare and health programs.
The bill received approval after a detailed debate, with several members expressing concern over India’s high tobacco consumption rates and the associated burden on the healthcare system. The Finance Minister reassured them that the revised duty structure is designed to achieve a balance between revenue needs and public health priorities.
With the bill now passed, tobacco manufacturers will face higher taxation slabs, which may result in increased market prices for cigarettes and related products in the coming weeks.
