To check rampant tax evasion by pan masala manufacturers, the government today introduced an optional compounded levy scheme for pan masala and gutkha.The scheme provides for an option for payment of Rs 12 lakh as duty per month per packing machine per line for gutkha pouches of retail sales price up to Rs 1.50.Similarly, the duty per machine per line for pan masala pouches carrying retail sales price up to Rs 1.50 has been fixed at Rs 10 lakh per month.Different duty slabs have been provided for pouches priced up to Rs 6.In case of multiple line packing machines, the rate of duty would be calculated accordingly, an official press release said.
