Government introduces bills to maintain higher taxes on tobacco products

Government introduces bills to maintain higher taxes on tobacco products

In order to maintain the incidence of GST on cigarettes and pan masala beside others tobacco based products, Finance Minister Nirmala Sitharaman introduced two bills in Lok Sabha on Monday.

Centre Plans Higher Tobacco Taxes and New Pan Masala Cess as GST Compensation Ends

The Centre is set to introduce two new legislative bills to raise taxes on tobacco products and impose a fresh cess on pan masala as the GST compensation cess approaches its expiry. The Central Excise (Amendment) Bill, 2025 aims to increase excise duty on tobacco and related items to maintain overall tax incidence after the compensation cess ends. Meanwhile, the Health Security se National Security Cess Bill, 2025 will levy a new cess on pan mas…