While the minister said the Centre had surrendered its power to levy excise duty on tobacco in 2017, excise duty did continue after GST - though at a nominal level
The Centre has introduced two major taxation Bills aimed at increasing excise duty on tobacco products and imposing a new capacity-based cess on pan masala.
The government is likely to introduce two bills in the Lok Sabha to replace GST compensation cess with another levy, to ensure that the tax incidence remains the same on tobacco, pan masala and other sin goods after discontinuation of the cess. The Central Excise Amendment Bill, 2025, and The Health Security se National Security Cess Bill, 2025, are listed for introduction on Monday by Finance Minister Nirmala Sitharaman. According to sources, the Central Excise Amendment Bill, 2025, will replace GST compensation cess on tobacco by levying excise duty on tobacco. The 'Health Security se National Security Cess Bill, 2025', will replace the compensation cess on pan masala. It seeks to "augment the resources for meeting Security expenditure on national security and for public health, and levy a cess for the said purposes on the machines installed or other processes undertaken by which specified goods are manufactured or produced". Currently, Goods and Services Tax (GST) at 28 per cent
Tobacco products currently fall under the highest GST slab of 28 per cent, along with a compensation cess that varies depending on the product type
Distributors of aerated drinks and cigarettes told the Finance Ministry that cess accumulation under the new 40 per cent GST regime is blocking working capital and hitting liquidity
In 2024, the Haryana Assembly passed a bill amending the Cigarettes and Other Tobacco Products Act to ban hookah bars across the state
New levy could follow full repayment of GST compensation loans, keeping overall tax incidence on tobacco products high
GST authorities have detected 61 cases of illicit tobacco products, including cigarettes and pan masala, involving tax amounting to Rs 104.38 crore in the first quarter of the current financial year, as per government data. The Directorate General of Goods and Services Tax Intelligence (DGGI) and other authorities have detected these cases during the April-June period, it said. Besides, it said, customs field formations and Directorate of Revenue Intelligence (DRI) have seized around 3.93 crore sticks of cigarettes in the current financial year up to June 2025. According to the DRI data, seizures of smuggled cigarettes have witnessed a sharp spike between 2019-20 and 2023-24, rising by over 107 per cent in volume and more than 110 per cent in value. High-margin goods like gold, tobacco, and alcohol are heavily taxed, creating strong incentives for smuggling and tax evasion. Their high value and steady demand make them prime targets for illicit trade, often fuelled by arbitrage and
The petition claims that banned plastic packaging materials are still being used and calls for strict enforcement of existing regulations
Marroco also confirmed that BAT would keep its two directors on the ITC board so that it has an influence
Smoking and hookah don't just harm your lungs and heart-doctors warn they also quietly damage sexual function, disrupt hormones, and reduce fertility in both men and women
The introduction of a "track and trace mechanism" for certain goods announced in the Union Budget 2025-26 will assist in controlling the menace of illegal trade, especially in cigarettes, and help the industry grow, tobacco industry said on Saturday while welcoming the proposed changes. Finance Minister Nirmala Sitharaman in her Union Budget on Saturday proposed to amend the Central Goods and Services Tax Act, 2017, enabling a mechanism for 'Track and Trace', aimed at curbing tax evasion in high-risk commodities. "The proposed amendments in The Central Goods and Services Tax Act, 2017, enabling a mechanism for Track and Trace, will help in controlling the illicit cigarette trade in the country, thereby helping the enforcement agencies to take corrective action against the perpetrators of this crime," Tobacco Institute of India (TII) said in a statement. This will also help the 'legal industry' to gain from the illicit market, said TII which represents farmers, manufacturers, exporte
The West Bengal government has extended the ban on manufacturing, storing and selling gutkha and pan masala products containing tobacco or nicotine for another year, starting November 7. The order was issued by the state health department on October 24, citing public health concerns. "The Commissioner of Food Safety of the state is empowered under Section 30 of the Food Safety and Standards Act, 2006 to prohibit in the interest of public health, the manufacture, storage, distribution or sale of any article of food in the whole of State, for a period of one year", the order stated.
The Lancet Oncology study highlighted that South-Central Asia recorded the highest number of oral cancer cases linked to smokeless tobacco and areca nut use
The government on Wednesday said it has allowed sale of excess FCV tobacco produced by registered growers on auction platforms in Andhra Pradesh for the crop season 2023-24. The commerce ministry has also waived the additional service charges considering the crop damage in an area of 15,028.09 hectares across all soil regions in Andhra Pradesh. It said that the decision will benefit farmers of the state to recover the loss due to cyclonic rains in view of zero penalty on sale of the excess Flue Cured Virginia (FCV)) tobacco produced by registered growers on the auction platforms in Andhra Pradesh for 2023-24 crop season. This consideration will handhold the farmers to overcome their financial plight inflicted due to natural calamity and would greatly help growers continue their livelihood, it added. "Union Minister of Commerce and Industry Piyush Goyal has approved the sale of the excess Flue Cured Virginia (FCV) tobacco produced by registered growers on the auction platforms in ..
Tobacco exporters have asked the government to extend the duty refund scheme RoDTEP to the sector to boost outbound shipments. In a meeting with Commerce and Industry Minister Piyush Goyal in Hyderabad on June 29, traders submitted that tobacco exporters are not covered under any scheme that provides export incentives. They "requested to extend support to tobacco exporters by including them under the RoDTEP scheme," the ministry said in a statement. They also requested the government help in curtailing the unauthorized production and use of chewing tobacco in India due to which there is a huge loss to the government exchequer, it added. They also informed that there is an increase in illicit cigarette sales. The scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) provides for refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods and are not being reimbursed under any other mechanism at the cen
World No Tobacco Day 2024: The world observes No Tobacco Day every year on May 31 for spreading awareness about its potential risks
Progress on other development indicators including adolescent pregnancy
Prices range between Rs 280 and Rs 290 per kg and are predicted to surpass Rs 300 per kg in Andhra Pradesh market
New Zealand said on Wednesday it will ban disposable e-cigarettes, or vapes, and raise financial penalties for those who sell such products to minors. The move comes less than a month after the government repealed a unique law enacted by the previous left-leaning government to phase out tobacco smoking by imposing a lifetime ban on young people buying cigarettes. New Zealand's Associate Health Minister Casey Costello said on Wednesday that e-cigarettes remain a key smoking cessation device and the new regulations will help prevent minors from taking up the habit. While vaping has contributed to a significant fall in our smoking rates, the rapid rise in youth vaping has been a real concern for parents, teachers and health professionals, Costello said. Under the new laws, retailers that sell vapes to children under 18 years of age will face fines of up 100,000 New Zealand dollars (USD 60,000), while individuals will be fined 1,000 New Zealand dollars (USD 600). Other regulations ...