News

In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman announced changes affecting everyday items, including alcohol and tobacco products.

The Tax Collected at Source (TCS) rate for sellers of alcoholic liquor, scrap, and minerals has been simplified to a flat 2%. Previously, these sectors had varying rates, which in some cases were higher. This move is aimed at easing compliance and making the tax system simpler and more business-friendly.

As a result, alcohol is set to become costlier for consumers, while sellers benefit from a uniform rate.

Meanwhile, the government has revised the National Calamity Contingent Duty (NCCD) on tobacco products, increasing the rate from 25% to 60% effective May 1, 2026. However, the effective tax burden on manufacturers and consumers remains unchanged, as other excise duty components are adjusted. This change will apply to chewing tobacco, jarda scented tobacco, and similar products, allowing flexibility in tax management without affecting prices.

This is a breaking news story. More details will be added shortly.