Cigarettes, Pan Masala Prices Soar: New Excise Duty, Health Cess Kick In Today

• Starting February 1, cigarettes, pan masala, and other tobacco products face increased prices due to additional excise duty and health cess.
• These new levies replace the existing 28% GST plus compensation cess on 'sin goods' implemented since July 1, 2017.
• A new MRP-based valuation mechanism for tobacco products will also be introduced from today.
• Short non-filter cigarettes up to 65 mm will see an additional duty of Rs 2.05 per stick, with higher duties for longer cigarettes.
• Chewing tobacco will attract an 82% excise duty, while gutkha will be taxed at 91%.

Why It Matters: Tobacco products, including cigarettes and pan masala, become more expensive from today due to new taxes.