Cigarettes, Paan-Masala to Get Costlier from Feb 1: New Tax Rules Implemented
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News18•31-01-2026, 18:02
Cigarettes, Paan-Masala to Get Costlier from Feb 1: New Tax Rules Implemented
- •New tax structure for cigarettes, tobacco products, and paan-masala comes into effect from February 1, making them more expensive.
- •Additional excise duty on cigarettes and tobacco, and a Health and National Security Cess on paan-masala will replace the old compensation cess.
- •MRP-based GST valuation for chewing tobacco, filter khaini, zarda, and gutkha aims to curb tax evasion and boost revenue.
- •Paan-masala manufacturers must re-register under the new cess law and install CCTV cameras covering all packing machines, with recordings preserved for 2 years.
- •Despite changes, the total tax burden on paan-masala, including 40% GST, will remain around 88%.
Why It Matters: Smokers and paan-masala users face higher prices from February 1 due to new tax and cess implementations.
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