tobacco taxation India

New Delhi, January 1, 2026: The Centre has announced a fresh excise duty on cigarettes, a move that is set to increase retail prices from February 1 and impact smokers nationwide. An order issued by the finance ministry said the revised duty will be imposed based on the length of cigarettes, ranging between ₹2,050 and ₹8,500 per 1,000 sticks, in addition to the existing 40 per cent Goods and Services Tax. The new levy comes at a time when the overall tax burden on cigarettes in India is estimated at about 53 per cent, well below the 75 per cent…