If you are also fond of cigarettes, beedis or pan masala and your day seems incomplete without them, then this news is important for you. The government has taken such a decision in the beginning of the new year, due to which a sharp increase in the prices of tobacco products is considered certain. This habit of yours is going to be heavy on your pocket since February.
New tax rules will come into effect from February 1
The government has decided to impose additional excise duty on tobacco related products. This new tax will be applicable from 1 February 2026. Along with this, a new cess will also be imposed on Pan Masala. That means, from the first of February, cigarettes, beedis, tobacco and pan masala will become more expensive than before.
New cess will be imposed on GST
Till now compensation cess was levied on tobacco and pan masala along with GST. But the government is now going to remove that cess and impose a new health and national security cess. According to the notification, 40 percent GST will be applicable on products like cigarettes, pan masala, tobacco, while 18 percent GST will be applicable on beedis. Apart from this, excise duty and cess will also be added separately, due to which the total price will increase significantly.
Read Also: Gayatri family honored snake friend Shrikant Vishwakarma
Pan masala will be hit the hardest
There is bad news for those who eat pan masala. The government has announced to impose health and national security cess on pan masala. New rules have also been notified for this. New rules will also be applicable on machines making chewing tobacco, zarda, scented tobacco and gutkha. This will have a direct impact on the cost of these products and then the market price.
what is the purpose of government
The government says that “sin goods” like tobacco and pan masala have serious effects on health. By increasing taxes on these, not only is an effort being made to reduce consumption, but the revenue generated from this will be used for health and safety related needs. Parliament had cleared the way for this new cess and excise duty by passing two bills in December.
Read Also:Gayatri family honored snake friend Shrikant Vishwakarma
What will be the impact on common people?
This decision will have a direct impact on common consumers. People who consume cigarettes, beedis or pan masala daily will now have to spend more money. Many shopkeepers believe that the increase in prices may affect sales. However, from health point of view, this decision can prove helpful in getting people away from these habits.
Comments are closed.