India Unveils Bills to Restructure Pan Masala Cess, Hike Excise Duty on Tobacco Products

Business
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CNBC TV18•01/12/2025
India Unveils Bills to Restructure Pan Masala Cess, Hike Excise Duty on Tobacco Products
- •India proposes new tax structure on tobacco and pan masala.
- •Excise duty on cigarettes to range from ₹2,700 to ₹11,000 per thousand sticks.
- •GST on tobacco products to rise from 28% to 40% after loan repayments.
- •New Health and Security Cess on pan masala tied to production capacity.
- •Cess on pan masala must be paid monthly, with penalties for delays.
Why it matters: Higher taxes on tobacco and pan masala may impact prices and public health policies.
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