New GST Rates on Tobacco to be Levied from February 1; Cigarettes and Pan Masala to Attract 40% Tax

This news report details the upcoming implementation of new Goods and Services Tax (GST) rates on tobacco products, effective from February 1st. The government has mandated a 40% GST on cigarettes and pan masala, while bidis will be taxed at 18%. These changes follow GST reforms announced earlier in 2025 and aim to address public health concerns by increasing the cost of 'sin goods'. The broadcast highlights that the tax hike aligns with global standards to curb consumption. It also mentions that the new rates were part of a broader tax overhaul, with the specific 'sin tax' implementation delayed until this date. The programme further discusses the potential impact on consumers and the industry, noting that the Indian Tobacco Institute has expressed dissatisfaction with the move.