UPSC Prelims Practice Questions — Taxes prove futile to burn out cigarette use in India

Q1. Which one of the following is the nodal Ministry for the implementation of the National Tobacco Control Programme (NTCP) in India?

  • A. Ministry of Finance
  • B. Ministry of Health and Family Welfare
  • C. Ministry of Consumer Affairs, Food and Public Distribution
  • D. Ministry of Commerce and Industry

Q2. Which one of the following is the principal Central legislation governing the regulation of trade, advertisement and distribution of tobacco products in India?

  • A. Drugs and Cosmetics Act, 1940
  • B. Prohibition of Electronic Cigarettes Act, 2019
  • C. Cigarettes and Other Tobacco Products Act, 2003 (COTPA)
  • D. Food Safety and Standards Act, 2006

Q3. With reference to the GST rate structure for tobacco-related products effective from 1 February 2026, consider the following products: 1. Cigarettes 2. Beedis 3. Pan masala 4. Chewing tobacco (zarda) Which of the above are correctly identified as attracting the special 40% GST rate notified for tobacco and pan masala?

  1. Cigarettes
  2. Beedis
  3. Pan masala
  4. Chewing tobacco (zarda)
  • A. 1, 2 and 3 only
  • B. 1, 3 and 4 only
  • C. 2 and 4 only
  • D. 1, 2, 3 and 4

Q4. In the context of taxation of tobacco products in India, which one of the following best describes the 'GST Compensation Cess'?

  • A. A cess levied on select demerit and luxury goods such as tobacco, aerated drinks and motor vehicles, the proceeds of which are used to compensate States for revenue loss arising from the introduction of GST
  • B. A surcharge levied on the income of tobacco manufacturers, earmarked for funding the National Tobacco Control Programme
  • C. An additional customs duty imposed on imported tobacco products to finance public-health awareness campaigns
  • D. A tax levied by State Governments on retail sale of tobacco products to fund Tobacco Cessation Centres