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.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Shehbaz Sharif says ceasefire extends beyond Iran, including “Lebanon and elsewhere”
Islamabad: Pakistan’s Prime Minister Shehbaz Sharif has said the ceasefire agreement between Iran, the United States and their allies extends beyond the immediate conflict and includes “Lebanon and elsewhere,” adding that it is effective immediately.
In a social media post, Sharif said, “I warmly welcome the sagacious gesture extend deepest gratitude to the leadership of both the countries and invite their delegations to Islamabad on Friday, 10th April 2026, to further negotiate for a conclusive agreement to settle all disputes.”
He said both sides had shown “remarkable wisdom and understanding” and remained constructively engaged in efforts aimed at peace and stability during the high-stakes mediation process.
“We earnestly hope that the ‘Islamabad Talks’ succeed in achieving sustainable peace and wish to share more good news in coming days,” Sharif added.
With the greatest humility, I am pleased to announce that the Islamic Republic of Iran and the United States of America, along with their allies, have agreed to an immediate ceasefire everywhere including Lebanon and elsewhere, EFFECTIVE IMMEDIATELY.
— Shehbaz Sharif (@CMShehbaz) April 7, 2026
I warmly welcome the…
