Cigarette prices in India are set to rise from February 1, 2026, following a major revision in the government’s tax structure. The Centre has decided to reintroduce a separate central excise duty on cigarettes, in addition to the existing Goods and Services Tax (GST).
Under the earlier system, cigarettes were taxed mainly through GST along with a value-based levy. From February 1, a specific excise duty will again be imposed, calculated per 1,000 cigarettes. The duty will vary based on whether the cigarette is filtered or non-filtered and on its length, measured in millimetres including the filter. Longer cigarettes will attract higher taxes.
The excise duty will range from Rs 2,050 to Rs 8,500 per 1,000 cigarettes. This translates to different tax rates per stick. Non-filter cigarettes up to 65 mm will attract an excise duty of around Rs 2.05 per cigarette, while filter cigarettes of the same length will be taxed at about Rs 2.10 per stick. Cigarettes measuring between 65 mm and 70 mm will face a duty of approximately Rs 3.60 to Rs 4 per stick, while those between 70 mm and 75 mm will be taxed at around Rs 5.40 per cigarette.
A higher slab of Rs 8,500 per 1,000 cigarettes has been introduced for non-standard or specially designed cigarettes, though this is unlikely to impact most commonly sold brands.
Premium and longer cigarettes are expected to see the steepest price hikes. Brands such as Gold Flake Premium, Red & White King Size, Classic, Marlboro variants, Navy Cut long sticks, and flavoured cigarettes like Ice Burst are likely to become costlier. Shorter and non-filter cigarettes are expected to see relatively smaller increases, according to a Daily Jagran report.
The new excise duty will be levied over and above the existing GST, which is charged at either 18 per cent or 40 per cent, depending on the product. Meanwhile, the GST compensation cess on tobacco has been withdrawn. Even after these changes, total taxes on cigarettes will make up about 53 per cent of the retail price, still below the World Health Organisation’s recommended level of 75 per cent aimed at reducing tobacco consumption.