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Background: Policy Shift in Indirect Taxation on Tobacco and Cigarettes The Government of India has notified that, effective 1 February 2026, additional excise duty will be imposed on tobacco products, including cigarettes, alongside the ongoing Goods and Services Tax (GST) regime. The notification follows the decision of the 56th GST Council to phase out the GST Compensation Cess framework and restructure taxation on sin goods such as cigarettes, chewing tobacco, gutkha, and pan masala. This restructuring ensures that revenue neutrality is maintained even after the withdrawal of the compensation cess mechanism. Introduction of Additional Excise Duty on Cigarettes and Tobacco Products From 1 February 2026, excise duty will be levied on tobacco products on top of the existing GST rate. The Finance Ministry has notified the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026. Under the new excise structure: Additi...

 

WEF Special Meeting in Riyadh: Fostering Global Collaboration and Development Addressing Global Challenges Amidst the backdrop of geopolitical tensions and economic complexities, the World Economic Forum (WEF) is gearing up to host a Special Meeting on Global Collaboration, Growth, and Energy for Development in Riyadh. This pivotal gathering will bring together 1,000 global leaders from 92 countries on April 28-29, to foster global dialogue and seek actionable solutions to the multifaceted challenges that confront our world today. Building on Past Successes Building on the success of the inaugural Growth Summit held in Switzerland last year, the WEF's Riyadh meeting will advocate for forward-thinking approaches to address interconnected crises while also acknowledging the short-term trade-offs that may be necessary. The meeting will particularly focus on bridging the growing North-South divide on critical issues such as emerging economic policies, energy transition, and geopolitica...

India's Wholesale Inflation Sees Marginal Rise in March Introduction: India's wholesale inflation, as measured by the Wholesale Price Index (WPI), experienced a slight uptick in March, marking the fifth consecutive month in positive territory after a prolonged period of negative growth. Official data released on Monday revealed key insights into the country's inflation trends, indicating both challenges and opportunities for the economy. Analysis: The annual rate of inflation, based on the All India Wholesale Price Index, stood at 0.53 percent in March 2024 compared to the same period last year. This positive inflation rate is attributed to several factors, including increased prices of food articles, electricity, crude petroleum, natural gas, machinery, and equipment, among others. While economists note that a modest rise in wholesale inflation can stimulate production incentives for manufacturers, it also underscores the need for careful monitoring to maintain economic st...