New Delhi: The prices of cigarettes, bidis and pan masala will increase. An additional cess will be imposed on them along with GST. The central government has said that the increased prices will come into effect from February 1. (Cigarette and Beedi Costlier) It has been stated that additional excise duty will be imposed on tobacco products and a new cess will be imposed on pan masala.
Meanwhile, from February 1, 40 percent GST will be levied on pan masala, cigarettes and tobacco products. There will be 18 percent GST on bidis. Also, additional excise duty will be levied on tobacco and related products. There will be a health and national security cess on pan masala. This new cess will be implemented in place of the previous compensation cess.
Meanwhile, the Union Finance Ministry on Wednesday also announced rules for chewing tobacco, zarda scented tobacco and gutka packing machines (capacity determination, collection of duty). With this, there will be additional taxes on their manufacturing machines as well.
However, in December, Parliament passed two bills that allow the imposition of a new health and national security cess on the manufacture of pan masala and an excise duty on tobacco.
