Starting February 1, there will be a significant price increase on bidis, cigarettes, gutkha, and other tobacco products in India. This announcement comes as part of a new directive issued by the central government. Finance Minister Nirmala Sitharaman confirmed during the budget speech that additional taxes would take effect from next month. The government clarified that a revised Goods and Services Tax (GST) structure for these products will also be implemented on February 1.
The central government has specifically targeted items like bidis, cigarettes, and gutkha, increasing the tax burden on these products. A pair of bills passed in December opened the way for a new cess and additional excise duties on pan masala and tobacco products. Under the new policy, a GST of 40% will apply to these items. Alongside this, an additional health and national security cess will be introduced.
Previously, these items were taxed at a rate of 28% GST along with an extra compensation cess, totaling a tax burden of 53%. However, with the new structure imposing three different types of taxes, prices for cigarettes and other tobacco products are expected to rise considerably, with some prices potentially doubling. In contrast, bidi prices may see a comparatively smaller increase as the GST rate for bidis will remain at 18%.
Many countries across the globe impose higher taxes on harmful products to protect public health and boost government revenue. The Indian government has adopted a similar approach, intending to levy the highest taxes on these goods. It’s noteworthy that the government derives about 3% of its total revenue from tobacco products, which also support a significant number of jobs in the country.
Original Source: https://assam.nenow.in/cigarette-beedi-pan-masala-to-be-costlier-with-new-tax/
Category: Popular Stories,দেশ,শীর্ষ সংবাদ
Tags:
Publish Date: 2026-01-01 13:41:00
