New Delhi, Jan 1: The government has officially notified that, starting from February 1, 2026, additional excise duties will be imposed on tobacco products, while a new Health and National Security Cess will be levied on pan masala. These new levies will be in addition to the existing Goods and Services Tax (GST) on these items and are aimed at increasing revenue while also addressing health and national security concerns.

Under the new regulations, tobacco products, including pan masala, cigarettes, and similar items, will be subject to a higher GST rate of 40%, while biris will attract an 18% GST. In addition to this, the Health and National Security Cess will be imposed specifically on pan masala, and tobacco-related products will face an additional excise duty.

The changes follow the passage of two bills by Parliament in December, which authorized the imposition of the new cess on pan masala production and the additional excise duty on tobacco. These measures are intended to replace the existing compensation cess currently levied on these "sin goods."

The new levies are part of the government's ongoing efforts to address public health concerns related to tobacco and pan masala consumption, while also generating additional revenue for public welfare and national security initiatives.