India, Jan. 31 -- The government will implement a new tax structure for cigarettes, tobacco products, and pan masala starting February 1.

This includes an additional excise duty on cigarettes and a health and national security cess on pan masala, replacing the previous 28% GST and compensation cess system.

A new MRP-based valuation for tobacco products will be adopted, reducing tax evasion and enhancing revenue collection.

Pan masala manufacturers must register under the new cess law, install CCTV on packing machines, and report machinery status to excise authorities. Despite these changes, the total tax burden on pan masala will stay around 88%.

Published by HT Digital Content Services with permission from Sarkaritel....