Tobacco levy a compliance nightmare: Experts

WITH the new levies— Central Excise duty and the Health Security Se National Security Cess — on tobacco products and Pan Masala, manufacturers should be prepared for greater scrutiny along with an additional compliance burden, experts cautioned.

- PUSHPITA DEY @New Delhi

Also, the government will need to enhance the system’s capacity to manage the renewed complexity that could arise from implementing these two new levies.

“The Centre is signalling tighter regulatory oversight anda more formula-driven revenue model. Manufacturers can expect deeper scrutiny of pricing, production patterns, and reporting practices as compliance becomes more data-intensive. The shift to a retail sale price (RSP)-based GST system further elevates the significance of accurate price declarations,” said Manoj Mishra,