New Excise Duty on Tobacco, Cess on Pan Masala from Feb 2026; Prices to Rise

• Additional excise duty on cigarettes and tobacco products, and Health & National Security Cess on pan masala, effective February 1, 2026.
• Ministry of Finance issued official notification for the new tax structure.
• Taxes will be levied in addition to GST, increasing consumer costs.
• Duty and cess will be determined based on the production capacity of manufacturing machinery.
• Parliament passed the related bill; government aims to reduce tobacco consumption and boost revenue for health and national security.

Why It Matters: Tobacco and pan masala to cost more from Feb 2026 due to new excise duty and cess.