Prices of cigarettes, beedis, pan masala to rise from Feb 1 with new tax, cess

Vartha Bharati | 01-01-2026 | 10:04:00 IST

Representational image (freepik)

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.

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.

US–Iran first round direct talks conclude in Islamabad: Report

12-04-2026 ¦ 12-04-2026 IST

The first round of direct talks between the United States and Iran, held in Islamabad, has concluded, Al Jazeera reported citing sources close to the development.

According to the report, following the discussions, delegations from both sides agreed to exchange written documents, a move aimed at ensuring clarity and consensus on the understandings reached during the meeting.

Both the Iranian and US delegations arrived in Islamabad on Saturday, April 11, amid high security for the peace talks.