The second day of the Parliament's Winter Session commenced with the government poised to table the Central Excise (Amendment) Bill, 2025, amid continued uproar from the Opposition. The session is expected to be fiery, with debates, sharp exchanges, and significant political moments anticipated in both houses.
Central Excise Amendment Bill
Finance Minister Nirmala Sitharaman is set to introduce the Central Excise (Amendment) Bill, 2025, which seeks to amend the Central Excise Act, 1944. The bill aims to revise the excise duty structure on tobacco and tobacco products. This move is intended to replace the Goods and Services Tax (GST) compensation cess currently levied on these goods. The government aims to maintain the overall tax burden on products like cigarettes, chewing tobacco, and pan masala, even after the GST compensation cess expires.
The bill proposes increasing central excise duty rates on various tobacco products. For example, the duty on unmanufactured tobacco is proposed to increase from 64% to 70%, while the duty on cigars and cheroots may rise from 12.5% or ₹4006 per thousand to 25% or ₹5000 per thousand, whichever is higher. Similarly, the excise duty on filter cigarettes of various lengths is slated to increase from ₹200–₹545 per thousand to ₹2700–₹7000 per thousand.
The government believes the revised excise duty structure will provide the necessary fiscal space to protect the overall tax incidence on tobacco products. It also aims to ensure stable tax revenue from tobacco products, maintain continuity in taxation after the discontinuation of the Compensation Cess, and discourage tobacco consumption by tightening the duty regime.
Opposition's Protest over SIR
The Opposition is expected to continue pressing for a debate on the Special Intensive Revision (SIR) of voter rolls. On the first day of the Winter Session, both houses witnessed protests by Opposition members seeking debates on the SIR, leading to adjournments in the Lok Sabha and a walkout in the Rajya Sabha.
The Special Intensive Revision (SIR) of electoral rolls is a thorough voter list verification and revision process conducted by the Election Commission of India. It aims to ensure that no eligible citizen is left out and no ineligible person is included in the electoral roll. The opposition, however, alleges that the SIR process has led to large-scale voter deletions and irregularities. They are demanding an immediate debate in Parliament and a transparent probe into the SIR exercise. Some opposition leaders have gone so far as to accuse the government of orchestrating a "conspiracy to delete genuine voters".
National Herald Case
The Winter Session is also shadowed by the ongoing National Herald case. The Delhi Police's Economic Offences Wing (EOW) has filed a new FIR in the money laundering case, which includes Sonia Gandhi and Rahul Gandhi among the accused. The case originates from a complaint filed by former MP Subramanian Swamy, alleging misuse of funds by Congress leaders. The ED has alleged financial irregularities involving Associated Journals Ltd (AJL), the original publisher of the National Herald.
The Congress party has termed the FIR "belated" and alleges that the government is engaging in "mischievous politics of harassment, intimidation, and vendetta" against its leadership. However, the BJP has dismissed these claims as "baseless and false". The Rouse Avenue Court in Delhi has adjourned the decision on whether to take cognizance of the ED's chargesheet in the case until December 16.
