Cigarettes, pan masala and other tobacco products to get costlier from Feb 1

A major development comes from the Ministry of Finance as tobacco products are set to become costlier from the beginning of February, following a decision by the Central Government to impose higher taxes. The Ministry of Finance has announced that a 40 per cent tax will be levied on pan masala, cigarettes and other tobacco products, leading to a rise in retail prices nationwide.

According to official information, the decision to raise taxes on tobacco products had already been taken earlier by the Centre. In December, Parliament approved a new Health and National Security Cess aimed at generating additional revenue and addressing public health concerns.

As part of this move, two separate Bills were passed in Parliament to impose excise duty on tobacco products. The new tax structure will come into effect from February 1, making tobacco consumption more expensive for consumers.

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Impact on Consumers

The price hike is expected to directly affect users of cigarettes, pan masala and tobacco, as manufacturers and retailers pass on the increased tax burden to customers.

With the new tax regime set to kick in soon, tobacco products will no longer remain as affordable as before. The government’s move signals a firm stance on taxation and public health, while consumers prepare to feel the pinch in the coming months.