Cigarettes, pan masala prices to rise as new excise duty comes into force from today
New Delhi: Cigarettes, pan masala and other tobacco products have become more expensive from today following the implementation of a new excise duty regime introduced by the Centre, reported NDTV.
The revised tax structure, aimed at tightening regulation on so-called “sin goods”, brings back excise duty along with additional cesses, replacing the earlier GST-linked compensation cess system.
Under the new framework, tobacco products will no longer be taxed only under the 28 percent GST slab with compensation cess, a structure that had been in place since the rollout of GST in July 2017.
Instead, the government has imposed a fresh excise duty on cigarettes and introduced a health and national security cess on pan masala and similar products.
According to the notified rules, excise duty on non-standard or uniquely designed cigarettes will range between Rs 2,050 and Rs 8,500 per 1,000 sticks, depending on their length and type. In certain categories, the duty could go as high as Rs 11,000 per 1,000 cigarettes. Short non-filter cigarettes of up to 65 mm length will attract an excise duty of around Rs 2.05 per stick, while short filter cigarettes of the same size will be taxed at approximately Rs 2.10 per stick. Medium-length cigarettes will face a duty of about Rs 4 per stick, and longer cigarettes around Rs 5.40 per stick.
With the new levies in place, the overall tax burden on cigarettes is expected to rise sharply to nearly 60–70 per cent, compared to the earlier range of 50–55 per cent. Experts estimate that the price of a cigarette, currently around Rs 18, could climb to Rs 70–72 in the long run as the higher taxes are passed on to consumers.
Alongside Cigarettes, raw tobacco will now attract an excise duty ranging between 60 and 70 per cent, while e-cigarettes and other nicotine delivery products will be taxed at 100 per cent. Pan masala and gutkha will additionally be subject to the newly introduced health and national security cess, further pushing up retail prices.
The government has maintained that the primary objective behind the steep tax hike is to discourage consumption of harmful products and encourage people to quit smoking and chewing tobacco.
However the report quoting experts stated that they have raised concerns that excessive taxation could have unintended consequences, and may push consumers towards cheaper, illegal or smuggled tobacco products, potentially undermining regulatory efforts.
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Rajnath to top commanders: Outmaneuver adversaries with strategic surprise
Jaipur/New Delhi (PTI): Defence Minister Rajnath Singh on Friday directed the top military commanders of the three services to integrate an "element of surprise" into modern warfare to outmaneuver India's adversaries and bolster strategic posture.
In his address at the joint commanders conference in Jaipur, Singh also described the Operation Sindoor as a testament to the "swift, precise, and joint response" of the Indian armed forces to safeguard national interests and called upon the military to remain ready to deal with any security challenges.
In their two-day deliberations, the commanders carried out a comprehensive review of the combat preparedness of the military in the wake of the evolving regional security situation.
Operation Sindoor was a demonstration of India's growing capabilities and a symbol of the nation's collective resolve and new military ethos, Singh said, a day after the first anniversary of Operation Sindoor.
He also unveiled a 'Joint Doctrine for Integrated Communication Architecture' that is aimed at strengthening doctrinal clarity, interoperability and integrated communications across the armed forces in future multidomain operations.
The joint commanders' conference, themed 'Military Capability in New Domains', brought together the top leadership of the defence ministry and the three services to deliberate on emerging security challenges and future readiness.
Comprehensive deliberations were held on future warfare, multidomain operations, technological transformation and joint capability development.
The conference witnessed extensive discussions on cognitive warfare, cyber resilience against evolving quantum and AI-enabled threats, military capability development in emerging domains, indigenous innovation and AI-enabled warfighting concepts.
It was attended by Chief of Defence Staff Gen Anil Chauhan, Chief of the Naval Staff Admiral Dinesh Kumar Tripathi, Chief of the Army Staff Gen Upendra Dwivedi, Chief of the Air Staff Air Chief Marshal AP Singh and Defence Secretary Rajesh Kumar Singh among others.
In his remarks, Singh asked the commanders to remain "future-ready" by learning from the operation as well as the current global security landscape.
He underscored the need to strengthen capabilities in artificial intelligence, autonomous systems, data analytics and secure communication networks to stay prepared in the rapidly evolving geopolitical security scenario. He emphasised that future conflicts will increasingly be shaped by hybrid threats, information dominance and operations conducted simultaneously across cyber, space, electromagnetic and cognitive domains, according to an official readout.
Highlighting the transformative impact of emerging technologies, Singh stressed on the importance of ensuring integrated national preparedness across all spectrums of conflict, it said.
Singh's remarks at the conference came a day after the first anniversary of Operation Sindoor.
The defence minister appreciated the progress achieved in enhancing jointness, integration and technological adoption across the three services, the readout noted.
Singh said that jointness constitutes a pivotal dimension within the transformative changes sweeping across the global defence sector.
"Future wars will not be won solely through weaponry, but through innovative thinking and enhanced synergy," he said.
The defence minister exhorted the commanders to cultivate the "element of surprise" to remain unpredictable to the nation's adversaries and secure a strategic edge in any given situation.
He, however, urged them to remain vigilant of the element of surprise of the enemy and always stay two steps ahead.
Singh also reiterated the Narendra Modi government's commitment to enhancing the capabilities of the defence forces through state-of-the-art weapons and platforms. He added that special focus is being laid on research in niche domains.
During the conference, he released a documentary film on Operation Sindoor.
The film reaffirms the nation's and defence forces' commitment to operational preparedness and decisive national response capabilities.
Demonstrations of advanced systems and platforms developed for intelligence fusion, operational planning and information management were also showcased during the conference reflecting growing integration of cutting-edge technologies into joint operational structures, according to the defence ministry.
The discussions will contribute significantly towards shaping India's future military transformation and integrated operational preparedness, it said.
