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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AIITA welcomes Karnataka’s ban on obscene songs in school events
Bhatkal: The Karnataka unit of the All India Ideal Teachers Association (AIITA) has welcomed the Karnataka government’s decision to strictly ban school children from dancing to obscene songs during educational and cultural programmes in government, aided, and private schools across the state.
AIITA Karnataka State President M. R. Manvi congratulated the government for taking what he termed an important step to preserve the sanctity of education.
“Such decisions to safeguard the dignity of school children and uphold the values of education are the need of the hour. This rule should not be limited to government schools alone but must be strictly implemented in all private educational institutions as well,” he said.
He further urged the government to address other concerns within school programmes.
“The government should not only prohibit obscene dances in the name of school anniversaries, but also ensure that plays and dialogues that incite religious hatred are avoided. Schools should be centres of harmony, not platforms for spreading hatred,” he added.
According to a recent circular issued by the Department of School Education and Literacy, obscene dances are adversely affecting the mental health and moral values of students.
In this regard, schools have been advised to use songs that promote nationalism, positive thinking, the greatness of Kannada culture, and value-based traditions instead of inappropriate content during programmes.
The circular also emphasises that students should be dressed in decent attire.
AIITA also backed the department’s warning that disciplinary action would be taken against head teachers if such guidelines are violated. The association has further demanded that district Deputy Directors of Public Instruction strictly monitor the implementation of these rules.
