New Levies on Tobacco and Pan Masala: Government's Bold Move

Starting February 1, additional excise duty will be charged on tobacco products and a new cess on pan masala, superseding the existing compensation cess. Pan masala will face a 40% GST rate and biris 18%. A Health and National Security Cess will also be applied.

The government announced that from February 1, additional excise duty will be imposed on tobacco products and a new cess on pan masala, replacing the existing compensation cess.

This change will mean that pan masala, cigarettes, and similar products will now incur a GST rate of 40%, while biris will have an 18% GST rate.

A Health and National Security Cess will be applied on pan masala, with tobacco products attracting extra excise duty. Effective February 1, the existing GST compensation cess will no longer be in effect.

(With inputs from agencies.)