
New excise duties and a cess on tobacco and pan masala, effective February 1, have raised concerns about potential price hikes and increased smuggling. While some social media users fear significant price increases and a boost to illegal markets, experts suggest a modest price rise of Rs 2-3 per stick for longer cigarettes. The levies replace the existing compensation cess, with pan masala facing a 40% levy and tobacco products an additional excise duty.
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