Extra Tax on Pan Masala and Cigarettes From February 1
The central government is preparing to impose additional levies on pan masala and tobacco products from February 1, a move likely to raise retail prices and impact regular consumers nationwide.
- Pan masala tax to increase from February 1.
- Cigarette prices may rise due to new cess.
- Tobacco tax changes announced by the Centre.
Consumers of pan masala and cigarettes are set to feel the impact of a fresh tax move announced by the central government. From February 1, additional duties are expected to come into effect, leading to a possible rise in prices across the country.
According to reports, the government has issued a notification introducing a new excise duty and cess structure. This change is being implemented as a replacement for the existing GST compensation cess that was earlier applied to tobacco related products.
Under the revised framework, health and national security cess will be imposed on pan masala and tobacco items over and above the applicable GST rates. Officials say the move is aimed at strengthening revenue collection while discouraging consumption of harmful products.
Industry experts believe the new tax structure will directly reflect on market prices, making cigarettes and pan masala costlier for consumers. Traders are also preparing for pricing revisions once the new rates officially come into force from February 1.
