Prices of cigarettes, beedis, pan masala to rise from Feb 1 with new tax, cess
New Delhi: Cigarettes, beedis, pan masala and other tobacco products will become costlier from February 1 after the Centre notified additional excise duty on tobacco products and a new Health and National Security Cess on pan masala, NDTV reported.
According to a notification issued by the government on Wednesday, the new levies will be imposed over and above the existing Goods and Services Tax (GST) and will replace the compensation cess currently charged on these products.
From February 1, pan masala, cigarettes, tobacco and similar products will attract a GST rate of 40 per cent, while biris will attract 18 per cent Goods and Services Tax (GST), according to a government notification.
On top of this, a Health and National Security Cess will be levied on pan masala, while tobacco and related products will attract additional excise duty.
The Finance Ministry also notified the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026, which will govern the assessment and collection of excise duty on these products.
Parliament had in December approved two Bills allowing levy of the new Health and National Security Cess on pan masala manufacturing and excise duty on tobacco.
The notification issued on Wednesday formally set February 1 as the implementation date. With the rollout of the new tax structure, the existing GST compensation cess on tobacco and pan masala, which is currently levied at varying rates, will cease to exist effective February 1.
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Rupee starts 2026 on negative note; falls 11 paise to 89.99/ USD in early trade
Mumbai (PTI): The rupee started the new year on a negative note and depreciated 11 paise to 89.99 against the US dollar in early trade on Thursday weighed down by persistent foreign fund outflows.
Forex traders said the rupee entered 2026 with both challenges and cushions, while global uncertainty persists, India’s strong macroeconomic parameters and ample forex reserves provide stability.
At the interbank foreign exchange market, the rupee opened at 89.94 against the US dollar, then lost some ground and touched 89.99, registering a fall of 11 paise over its previous close.
On Wednesday, the last trading session of 2025, the rupee settled at 89.88 against the US dollar.
"While the calendar has changed, volatility is likely to persist. Under Governor Sanjay Malhotra, the RBI appears comfortable allowing the rupee to adjust with market forces, while remaining actively present to smooth excessive moves and maintain orderly conditions," CR Forex Advisors MD Amit Pabari said.
Progress on the paused India–US trade deal remains a key upside risk and could deliver a meaningful confidence boost if concluded, Pabari said. "For now, USD/INR is expected to trade in the 89.30–90.20 range in the near term," he said, adding that a sustained break below 89.30 could open the path toward 88.50.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.09 per cent higher at 98.32.
Brent crude, the global oil benchmark, was trading lower by 0.78 per cent at USD 60.85 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex was trading 194.38 points higher at 85,414.98, while the Nifty was up 47.55 points at 26,177.15.
Foreign Institutional Investors offloaded equities worth Rs 3,597.38 crore on Wednesday, according to exchange data.
