The central government made a significant announcement on December 31, 2025, the last day of the year, regarding taxes on cigarettes, pan masala, and other tobacco products. The government announced that an additional excise duty will be levied on tobacco products from February 1, and a new cess will be imposed on pan masala.
The new taxes on tobacco and pan masala will be in addition to the existing GST rates and will replace the compensation cess currently levied on these harmful products.
How much tax will be levied on tobacco products now?
According to the government notification, from February 1, pan masala, cigarettes, tobacco, and similar products will attract a 40% GST, while beedis will be subject to an 18% Goods and Services Tax (GST).
Parliament had passed two bills in December, allowing for the imposition of a new health and national security cess on the manufacture of pan masala and an excise duty on tobacco.
The government on Wednesday fixed February 1 as the date for implementing these levies. The existing GST compensation cess, which is currently levied at varying rates, will be discontinued from February 1.
53% tax on tobacco products
The total tax on cigarettes in India currently stands at approximately 53% of the retail price, which is significantly lower than the World Health Organization's benchmark of 75%, aimed at reducing consumption. This includes a 28% Goods and Services Tax and an additional value-based levy depending on the size of the cigarette.
Drishyam 3: After Akshay Khanna's exit, an update has emerged regarding 'Drishyam 3'; shooting will resume on this date.
The third installment of Bollywood's highly anticipated thriller franchise, 'Drishyam', has been making headlines for the past few days. According to an India Today report, after completing the Mumbai
45 sixes, 40 minutes of bowling: Is Abhishek Sharma eyeing a spot in the Indian ODI team? He's using the Vijay Hazare Trophy as his platform.
Abhishek Sharma, a rising star in the Indian T20 team, no longer wants to limit himself to the shorter formats. Having established himself with his explosive batting in T20 international cricket,
'Stop the 10-minute delivery option', Gig workers on strike today; what are their demands?
The countdown to the New Year has begun. In a few hours, the entire world will be celebrating the arrival of 2026. However, those planning to celebrate New Year's Eve, from online shopping to party
Janhvi Kapoor reacted strongly to the incident of a man being burned alive in Bangladesh, saying, "This hypocrisy will destroy us."
Recently, Dipu Chandra Das was burned alive in Bangladesh. This brutality has shaken everyone. Now, Janhvi Kapoor has reacted to the Bangladesh lynching.
'Stranger Things' Season 5 Volume 2 released in India, fans eagerly await the final episodes; find out when it will be available to stream.
One of Netflix's most popular science fiction shows, 'Stranger Things', is eagerly awaited by viewers. Now that the show is approaching its final episodes, the excitement is at its peak. Fans are
Will Vecna be defeated in the final episode of 'Stranger Things 5'? Find out where you can watch the series.
The fifth season of the series 'Stranger Things' is currently making headlines. Fans are eagerly awaiting the final episode. Find out which streaming platform the series can be watched on worldwide
Unnao Rape Case: 'We are accountable to the victim', bail granted to Sengar stayed; what else did the CBI say in the Supreme Court?
The Supreme Court on Monday stayed the Delhi High Court's order suspending the life sentence of former BJP MLA Kuldeep Sengar in the 2017 rape case of a minor girl in Unnao, Uttar Pradesh.
Aviva Baig: Who is Aviva Baig? She is interested in photography and could become a daughter-in-law of the Gandhi-Vadra family.
There's a joyous atmosphere in the Gandhi family, as it's believed that Rehan Vadra, son of Congress MP Priyanka Gandhi and Robert Vadra, has gotten engaged. Rehan is said to have gotten engaged to
Vijay Hazare Trophy: Rohit Sharma was dismissed for a 'golden duck' against Uttarakhand; disappointed fans left the stadium.
Rohit Sharma celebrated his return to the Vijay Hazare Trophy in grand style, scoring a century against Sikkim on Wednesday. However, the Mumbai opener's bat remained silent in the second match.
New Year 2026 Celebration: Traffic changes expected today in Noida Sector-18 and surrounding areas; the traffic police have issue an advisory.
A large number of people are expected to head to restaurants, bars, and markets from Wednesday evening to celebrate the New Year 2026. In view of this, the traffic police have made arrangements.
