India to mandate CCTV, higher taxes on tobacco packing machines starting Feb 1, 2026.

Starting February 1, 2026, India will require manufacturers of pouch-packed chewing tobacco, gutkha, and similar products to install CCTV systems on all packing machines, retain footage for 24 months, and report machine details and pricing to excise authorities. Annual production capacity will be determined by physical inspections, with excise duties increasing to 82% for chewing and jarda tobacco and 91% for gutkha, on top of existing GST. Full duty is due upon machine installation, but abatement is allowed for non-operational machines if sealed and reported in advance. Reopening or removing machines requires prior notice. The rules aim to improve compliance and revenue collection.