9. Tobacco | Tobacco products see significant online demand, generating roughly $171 billion each year in global e-commerce spending. (Image: Shutterstock)
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CNBC TV1801/12/2025

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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