Excise Duty

Datanomics: Excise duty maths likely to skew if fuel duty cuts stay

Prolonged fuel duty cuts could derail FY27 excise projections, with petroleum taxes - a key revenue pillar - facing a potential ₹1.32 trillion hit

West Asia conflict: Govt steps in to shield OMCs via big duty cuts

Move to cost exchequer ₹1.3 trn in FY27; export duty reimposed

Govt to review windfall tax on export of diesel, ATF fortnightly: CBIC

CBIC Chairman Vivek Chaturvedi on Friday said the government will review the special additional excise duty or windfall tax on diesel and ATF every fortnight. The move to levy special additional excise duty (SAED) is to ensure domestic availability of diesel and ATF, Chaturvedi said, while briefing the media. The revenue gain from SAED is estimated at Rs 1,500 crore in the first fortnight, he added. The government on Thursday imposed an export duty of Rs 21.5 per litre on diesel and Rs 29.5 per litre on aviation turbine fuel (ATF) to discourage exports and improve domestic supply. The SAED is a levy first introduced in July 2022 to curb windfall gains by refiners following Russia's invasion of Ukraine. It was withdrawn in December 2024. Besides, the government has slashed excise duty on petrol and diesel by Rs 10 per litre each, a move aimed at shielding domestic consumers from a surge in global oil prices triggered by the Middle East conflict. Revenue loss due to the excise duty

Fuel price relief? Why India cut fuel excise duty now and what it means for oil prices

The government has reduced excise duty by ₹10 per litre on both petrol and diesel amid rising global oil risks linked to West Asia tensions. This brings excise on petrol down to roughly ₹3 per litre,

Excise duty cut can result in fiscal loss of ₹1.5 trillion, say economists

₹10 per litre excise duty cut on petrol and diesel may cost ₹1.5 trn in FY27 but help sustain consumption amid the West Asia crisis, even as economists flag risks to fiscal space

₹1.5 trn hit to exchequer as govt cuts petrol, diesel excise: Deven Choksey

Deven Choksey believes the excise cut may bring some respite to OMCs amid high energy prices, while create a ₹1.5 trillion dent to the exchequer per year.

IOC, BPCL, HPCL shares react as govt trims excise duty on petrol, diesel

The government has reduced the excise duties on petrol and diesel by ₹10 per litre each, bringing them down to ₹3 per litre of petrol and zero per litre of diesel

Delhi likely to extend existing excise policy after expiry on March 31

The Delhi government is likely to extend the excise regime extant for the Financial Year 2026-27, as it is still working on a new policy, official sources said on Friday. In June last year, the Delhi government extended the duty-based excise policy, which has been in effect from the licensing year 2022-23, for the 2025-26 fiscal. It was extended from July 1, 2025, to March 31, 2026. "Now, a proposal has been sent by the excise department for further extension of the existing policy for yet another extension, to the government," a government source said. The extension may come about after approval from the government. The existing policy has been continuing since 2023-24, when a reformative policy (2021-22) allowing private players in retail liquor sale was scrapped by the then AAP government in July 2022 amid allegations of irregularities. The existing policy, also referred to as the old excise regime, was then implemented in September 2022. Chief Minister Rekha Gupta last year

Duty hikes to dent cigarette volumes by 6-8% in FY27: Crisil Ratings

Crisil expects India's cigarette volumes to fall 6-8% next fiscal as higher excise duty and GST from February squeeze demand, especially in the mass segment

States' excise policy must optimise revenue, adopt clearer regulation

An optimal state policy must go beyond a revenue-hungry, punitive regulatory regime

Delhi govt raises sacramental wine quota, excise limits on denatured spirit

Delhi government has notified the amendments in the excise rules raising the storage and possession quantity of denatured spirit and enhanced the quota of sacramental wine for religious purposes, officials said on Monday. The upper limit of special denatured spirit that can be stored at licensed premises has been raised from 6,744 kilolitres to 15,000 kilolitres at any given time, said a recent Delhi government notification. The annual authorised possession limit for permit holders has also been increased from 64,000 kilolitres to 120,000 kilolitres. The Delhi Excise (Amendment) Rules, 2025, also revised Rule 20 of the Delhi Excise Rules relating to sacramental wine. Earlier, the Bishop of Delhi was allowed to purchase, transport and possess up to 91 litres of sacramental wine for church use. This limit has now been substantially enhanced to 4,000 litres annually. Under the revised provision, the Bishop of Delhi will be permitted to purchase or import duty-free sacramental wine in

ITC tanks 15% in 4 days, hits 33-month low after tax hike on cigarettes

A sharp decline in stock price of ITC has seen ₹75,675 crore market capitalisation erosion of the company in the past four trading days.

Tobacco taxes: How India’s new excise rules will push cigarette prices higher | Cigarette prices

From February 1, 2026, cigarettes and tobacco products will be taxed under a new excise framework. The government has scrapped the GST compensation cess and replaced it with a new excise duty,

Tobacco Institute urges review of tax hike on cigarettes, tobacco products

The Tobacco Institute of India calls on the government to reconsider the steep excise and GST hike on tobacco, warning of hardships for farmers, MSMEs, retailers and a surge in illicit trade

Why is Centre bringing back excise on tobacco after GST cess ends

The government said that tobacco products will continue to attract GST but will also be subject to additional excise duty on top of that tax from February 1

New tobacco excise duty rules: What changes, what stays, price impact

Before the latest notification, cigarettes and other tobacco products were taxed under a layered structure combining GST with multiple cesses, including a compensation levy

Tobacco excise rules: Makers to install CCTV, store footage from Feb 1

Manufacturers of chewing tobacco, gutkha and similar products will have to install a functional CCTV system from February 1, covering all packing machines and preserve the footage for at least 24 months, according to a government notification. Such manufacturers will also have to disclose to excise authorities the number of machines and their capacities, and can also claim abatement in excise duty in case a machine is non-functional for a minimum of 15 consecutive days, according to the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules notified by the Finance Ministry. The Rules will apply to manufacturers who pack such goods in pouches. "Those manufacturing in other forms (such as tins) have to pay the applicable duty on assessable value," an FAQ released by the Ministry said. The Ministry, on December 31, 2025, notified the additional excise duties that would be levied on chewing tobacco and related products,

Cigarettes, biris, pan masala, tobacco products to get costlier from Feb 1

The government on Wednesday notified February 1 as the date from which additional excise duty will be levied on tobacco products, and a new cess on pan masala. The new levies on tobacco and pan masala will be over and above the GST rate, and will replace the compensation cess which is currently being levied on such sin goods. From February 1, pan masala, cigarettes, tobacco and similar products will attract a GST rate of 40 per cent, while biris will attract 18 per cent Goods and Services Tax (GST), according to a government notification. On top of this, a Health and National Security Cess will be levied on pan masala, while tobacco and related products will attract additional excise duty. The Finance Ministry on Wednesday also notified the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026. Parliament had in December approved two Bills allowing levy of the new Health and National Security Cess on pan masa

Massive and historic economic transformation underway in UP: Nitin Agarwal

Minister Nitin Agarwal outlines how state's quadrupled excise revenue and robust infra are catalysing industrial investment and helping it to become a developed state

Excise reset uncorks demand and investment in Andhra's liquor market

Retail privatisation, wider brand access and transparent rules are lifting volumes and drawing major players back to the state