The Ministry of Finance (MoF) on December 31, 2025, notified regarding the duty rates for machine-based levy on Chewing Tobacco, Jarda Scented Tobacco, and Gutkha.
The following has been stated, namely: -
• It has notified revised duty rates under the machine-based levy for chewing tobacco, jarda scented tobacco, and gutkha under Section 3A of the Central Excise Act, 1944. The duty is levied per packing machine per month, based on the retail sale price (RSP) of the pouch and the speed of the packing machine (pouches per minute).
• Different slabs are prescribed for machines operating up to 500, 501–1000, 1001–1500, and above 1501 pouches per minute, with higher rates applicable to gutkha.
• The notification clarifies definitions of packing machines, RSP, and treatment of multi-track machines for duty calculation.
• The revised levy shall come into force from February 01, 2026.
[Notification no. - 04/2025-Central Excise]
