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The Hindu Editorial Analysis
We understand the significance of reading The Hindu newspaper for enhancing reading skills, improving comprehension of passages, staying informed about current events, enhancing essay writing, and more, especially for banking aspirants who need to focus on editorials for vocabulary building. This article will explore today’s editorial points, along with practice questions and key vocabulary.
Revised tobacco tax structure to come into effect from February 1
- The Union Finance Ministry on Thursday issued several notifications to bring in a new tax system for tobacco products. These changes will come into force from February 1.
- The decision follows the Central Excise (Amendment) Act, 2025, which was passed during the recently concluded Winter Session of Parliament. This Act provides for new and revised excise duty rates on various tobacco products.
- The Finance Ministry also announced that provisions of the Health Security-cum-National Security Act, 2025, which impose a special cess on pan masala manufacturing units, will be implemented from February 1.
- In an explanatory FAQ note, the Ministry said that under the Goods and Services Tax (GST) system, excise duty on cigarettes had practically come down to a very small amount — only a “fraction of a paisa” per cigarette stick.
- It also clarified that the GST compensation cess on tobacco products has not been increased since it was first introduced in July 2017.
- According to the Ministry, the affordability of cigarettes in India has either remained the same or increased over the last ten years. This means cigarettes have not become costlier when compared to people’s income levels.
- The note stated that this situation goes against global public health guidelines, which recommend that governments should raise specific excise duties every year so that cigarette prices rise faster than people’s incomes.
- At the same time, the Ministry notified that February 1 would be the date on which the GST compensation cess would stop being applicable.
- The compensation cess was originally introduced for five years to make up for revenue losses faced by States after the introduction of GST.
- The Finance Ministry also announced new GST rates for tobacco products.
- Beedis have been moved from the earlier 28% GST slab, which no longer exists, to the 18% GST slab.
- All other tobacco products have been placed under a 40% GST rate.
- These revised GST rates will also come into effect from February 1.
- Although the GST compensation cess was supposed to end in 2022, collections were not enough to fully compensate States because of the financial impact of the COVID-19 pandemic.
- Due to this shortfall, the Centre borrowed money to pay States their compensation, which led to the extension of the cess till 2026 so that the borrowed amount could be repaid.
- As the repayment of the loan is nearing completion, the government removed the compensation cess from most products on September 22, 2025, keeping it only on tobacco items.
- From February 1, 2026, the cess will also be removed from tobacco products, bringing the entire compensation cess system to a complete end.
- The Ministry also introduced a new method for fixing the value of certain tobacco products such as chewing tobacco, filter khaini, jarda, scented tobacco, and gutkha.
- Under this new system, the GST value of these products will be decided based on the retail sale price printed on their packaging.
- Regarding the Health Security-cum-National Security Act, 2025, the Ministry explained why national security was included under this law. It stated that normal tax collections are not always enough to meet the long-term funding needs of national security.
- It added that general tax revenues face many competing demands, such as development and welfare spending, and may not provide steady funding for core security requirements.
- The FAQ note explained that a separate, purpose-based cess helps the Union government create a stable and non-lapsable source of funds.
- This kind of funding can support long-term security planning, technology upgrades, capacity building, and the purchase of advanced equipment.
- The Ministry stressed that this method achieves these goals without increasing the tax burden on ordinary citizens or raising broad taxes like GST.
Air Marshal Nagesh Kapoor assumes charge as Vice Chief of Air Staff
- Air Marshal Nagesh Kapoor on Thursday took charge as the Vice Chief of the Air Staff. He succeeded Air Marshal Narmdeshwar Tiwari, who retired after completing 40 years of service in the Indian Air Force.
- Air Marshal Kapoor is a graduate of the National Defence Academy, the Defence Services Staff College, and the National Defence College.
- He is a highly experienced fighter pilot with more than 3,400 flying hours on MiG-21 and MiG-29 fighter aircraft.
- Over the course of his career, he has served in many important command, operational, training, and staff roles.
- His key postings include serving as the Air Officer Commanding-in-Chief of the Training Command and the South Western Air Command.
- He has been awarded several gallantry and distinguished service medals for his contributions.
- In another important development, Lieutenant General Harpal Singh on Thursday took charge as the 29th Director-General of Border Roads, officially assuming leadership of the Border Roads Organisation (BRO).
- He was commissioned into the Corps of Engineers in June 1991.
- Lieutenant General Singh brings more than 30 years of experience in various command, staff, and leadership roles.
- After taking charge, he praised the dedication and professionalism of BRO personnel.
- He also extended New Year 2026 greetings to all ranks.
First Vande Bharat Sleeper Train to Run Between Guwahati and Kolkata
- Prime Minister Narendra Modi will flag off the country’s first Vande Bharat sleeper train later this month, Railway Minister Ashwini Vaishnaw officially announced on Thursday.
- The new Vande Bharat sleeper train will run between Guwahati and Kolkata, offering faster overnight travel between Assam and West Bengal for long-distance passengers.
- The train will have 16 coaches and can carry a total of 823 passengers across different sleeper classes.
- It has a design speed of up to 180 kilometres per hour, making it one of the fastest sleeper trains planned on the Indian Railways network.
- The train will include eleven AC three-tier coaches, four AC two-tier coaches, and one exclusive first-class AC coach for premium passengers.
- The fare for AC three-tier passengers will be ₹2,300, while AC two-tier passengers will have to pay ₹3,000 for the journey.
- Passengers travelling in first-class AC will be charged ₹3,600.
- The train has specially designed berths with better cushioning to provide more comfort during overnight journeys.
- Automatic doors have been installed in the coaches to improve passenger safety, convenience, and temperature control during high-speed travel.
- Ride quality has been improved with better suspension systems and advanced noise control technology, making the journey smoother and quieter.
- For safety, the train will be equipped with Kavach, an indigenous automatic train protection system designed to prevent train collisions on busy routes.
- The driver’s cabin will have advanced control systems and multiple safety features to support safe and efficient high-speed operations.
- CCTV cameras will be installed in all coaches to enhance passenger security and allow continuous monitoring during the journey.
- Special seats have been designed for passengers with disabilities to ensure comfort, easy movement, and inclusiveness.
- In Assam, districts benefiting from this service include Kamrup Metropolitan and Bongaigaon, improving rail connectivity for local residents.
- In West Bengal, the train will serve districts such as Coochbehar, Jalpaiguri, Maldah, Murshidabad, Purba Bardhaman, Hooghly, and Howrah.
- Passengers will be served Assamese cuisine when the train starts from Guwahati, giving them a taste of local food.
- On the return journey from Kolkata, traditional Bengali dishes will be served, reflecting regional food culture onboard.
- The Railway Minister also said that India’s first bullet train project will be ready for operations by August 2027, as planned.
- The bullet train will be opened in phases to ensure smooth commissioning and operational readiness.
- The first section to open will be between Surat and Bilimora.
- This will be followed by the opening of the Vapi–Surat section, then the Vapi–Ahmedabad section, and later the Thane–Ahmedabad section.
- The final phase will connect Mumbai to Ahmedabad, completing the entire high-speed rail corridor.
- The 508-kilometre Mumbai–Ahmedabad bullet train project is progressing steadily, with major construction work already completed.
- Completed works include viaducts, bridges, tunnels, and stations, which will allow trains to run at speeds of up to 320 kilometres per hour.
- Once fully operational, the bullet train will reduce travel time between Mumbai and Ahmedabad to about two hours, bringing a major change in intercity travel.
Important Questions
- Why did the Union Finance Ministry state that excise duty on cigarettes had come down to a “fraction of a paisa” under the GST regime?
- Why did the Finance Ministry justify a dedicated cess for security under the Health Security-cum-National Security Act, 2025?
- Which key command appointments has Air Marshal Nagesh Kapoor held during his career in the Indian Air Force?
- What professional experience does Lieutenant General Harpal Singh bring to his role as Director-General of Border Roads?
- What features make the Vande Bharat sleeper train suitable for overnight long-distance travel between Guwahati and Kolkata?
- How will the phased opening of the Mumbai–Ahmedabad bullet train corridor be carried out according to the Railway Minister, alongside the introduction of the sleeper Vande Bharat train?
Important Vocabulary
- Notifications – Official government orders or announcements
- Affordability – Ability of people to buy something based on income
- Non-lapsable – Funds that do not expire at the end of a financial year
- Cess – A special tax collected for a specific purpose
- Superannuated – Retired after completing the service age
- Alumnus – A former student of an institution
- Gallantry – Bravery shown in dangerous situations
- Commissioned – Formally appointed as an officer in the armed forces
- Ergonomically – Designed for comfort and efficiency of users
- Indigenously – Developed within the country
- Viaducts – Long bridge-like structures carrying rail or road
- Phased – Planned and completed in stages
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