The government has notified February 1 as the date from which additional excise duty on tobacco products, and a health cess on pan masala will be levied, replacing the existing GST compensation cess levy on such ‘sin goods’.

A health and national security cess and excise duty on pan masala and tobacco products respectively will be over and above 40 per cent Goods and Services Tax (GST) rate, while in case of ‘biris’ it would be on top of the 18 per cent GST rate effective February 1, 2026, as per notifications issued by the Finance Ministry late on December 31, 2025. Cigarettes, depending on length and filter, will be taxed in the range of Rs 2050-Rs 8500 per 1000 sticks.