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      Question

      What is the excise duty rate that will continue to apply

      to tobacco products under the amended law passed by Parliament?
      A 30% Correct Answer Incorrect Answer
      B 35% Correct Answer Incorrect Answer
      C 38% Correct Answer Incorrect Answer
      D 40% Correct Answer Incorrect Answer
      E 45% Correct Answer Incorrect Answer

      Solution

      Under the Central Excise (Amendment) Bill, 2025, tobacco products will continue to be taxed at 40% as demerit goods. The removal of the GST compensation cess will be offset by this reinstated excise duty, ensuring the total tax burden remains unchanged.

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