Tobacco Manufacturers Mandated to Install CCTV, Retain Footage for Two Years

Tobacco product manufacturers producing chewing tobacco, gutkha, and jarda scented tobacco have been directed to install fully functional CCTV systems covering all packing machines by February 1, as per a new finance ministry order. The footage must be preserved for a minimum of 24 months to strengthen regulatory oversight and curb tax evasion in the sector. Manufacturers are also required to share access to surveillance systems with excise authorities when demanded.

Alongside CCTV compliance, manufacturers must disclose detailed information about their packing machines, including the number, capacity, technical specifications, and retail sale prices of products packed in pouches. Excise duty must be paid for the entire month during which a packing machine is installed. However, abatement can be claimed if a machine remains non-operational for at least 15 consecutive days, provided prior notice is given and the machine is sealed by excise officials.

The finance ministry has also announced higher excise duties in addition to the existing 40% GST. From February 1, chewing tobacco and jarda scented tobacco will attract an 82% excise duty, while gutkha will face a 91% levy. These machine-based excise rules apply only to pouch-packed products, while tobacco sold in other forms such as tins will continue to be taxed based on assessable value. Production capacity will be determined by excise authorities through physical verification, with reassessment required only if key production factors change.

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