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.