Cigarettes and tobacco products will become costlier from February 1, 2026, after the Centre notified higher excise duties alongside 40% GST. The move, replacing the compensation cess, may push a cigarette priced at ₹18 to around ₹21–₹22, with sharper hikes for longer and filter cigarettes.

How much will your cigarette cost from Feb 1? Beedi, pan masala to get costlier as Centre imposes new excise duty, cess

India will overhaul its GST system on 22 September, introducing a new 40% slab for luxury and sin goods, while scrapping 12% and 28% rates to simplify the tax structure.

India’s new 40% GST hits luxury and sin goods: What counts as a sin good, and is alcohol included? | Full list inside

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How much will your cigarette cost from Feb 1? Beedi, pan masala to get costlier as Centre imposes new excise duty, cess

India’s new 40% GST hits luxury and sin goods: What counts as a sin good?