Cigarette, pan masala may become costlier from 1 Feb 2026:Govt notifies levies of additional excise duty on tobacco health cess on pan masala

The government is adding new taxes to tobacco products and pan masala starting February 1st. This will likely increase the price of these products for consumers.
Who’s Affected? Businesses that make and sell tobacco and pan masala will need to adjust to the new tax rules.
The government is introducing two new taxes: Additional Excise Duty: This will be added to tobacco products.
Health Cess: This will be added to pan masala. These new taxes are on top of the existing Goods and Services Tax (GST). Currently, these products have a “compensation cess,” but that will go away on February 1st. What This Means for Prices? * Pan masala, cigarettes, and tobacco will have a GST rate of 40%.
* Biris will have an 18% GST rate.
* The new “Health and National Security Cess” will be added to pan masala.
* Additional excise duty will be added to tobacco products. New Rules for Tobacco Businesses: The government is also introducing new rules for businesses that make chewing tobacco, jarda scented tobacco, and gutkha. These rules are about how the government will determine the capacity of the packing machines used to make these products, which will affect how much tax they pay.
The government is making tobacco and pan masala more expensive through new taxes and is changing the rules for tobacco manufacturers. This could impact sales and profits for these businesses.