GoI Withdraws 18% Excise Duty on Unmanufactured Tobacco
On January 31, 2026, Government of India (GoI) withdrew the 18% Central Excise Duty levied on unmanufactured tobacco or tobacco refuse when it was cleared without a brand name and not packed for retail sale, effective February 1, 2026.
Key Details:
Background: Previously, all unmanufactured tobacco cleared from factories or warehouses was subject to 18% excise duty.
New Amendment: Under the new amendment, unbranded and non-retail packed unmanufactured tobacco will now attract nil excise duty, providing relief, especially to farmers, small suppliers, and businesses in the unorganized segment.
On January 31, 2026, Government of India (GoI) withdrew the 18% Central Excise Duty levied on unmanufactured tobacco or tobacco refuse when it was cleared without a brand name and not packed for retail sale, effective February 1, 2026.
Key Details:
Background: Previously, all unmanufactured tobacco cleared from factories or warehouses was subject to 18% excise duty.
New Amendment: Under the new amendment, unbranded and non-retail packed unmanufactured tobacco will now attract nil excise duty, providing relief, especially to farmers, small suppliers, and businesses in the unorganized segment.
- Other forms of unmanufactured tobacco such as those that are branded or packaged for retail sale will attract the 18% excise duty.
Cigarette Duty: It has been clarified that excise duty on cigarettes continues to remain unchanged regardless of stick length.
Sponsored Advertisement
No comments yet. Be the first!