New Delhi: Smokers may need to dig deeper into their pockets, as cigarette prices in India are set to increase from February 1, 2026, after the government announced a revised tax structure.
The updated system reintroduces a separate central excise duty on cigarettes in addition to the Goods and Services Tax (GST). The amount payable will now depend not only on the brand but also on the length and type of the cigarette, marking the first major change in cigarette taxation since GST was implemented in 2017.
Under the new rules, the excise duty will be levied per 1,000 cigarettes, varying based on whether the cigarette is filtered or non-filtered, and its length in millimetres, including the filter.
The duty will range from Rs 2,050 to Rs 8,500 per 1,000 cigarettes, with longer sticks attracting higher taxes.
Breakdown of Excise Duty Per Cigarette:
Short non-filter cigarettes (up to 65 mm): ~Rs 2.05 per stick
Short filter cigarettes (up to 65 mm): ~Rs 2.10 per stick
Medium-length cigarettes (65–70 mm): ~Rs 3.60–4 per stick
Long cigarettes (70–75 mm): ~Rs 5.40 per stick
Premium or non-standard designs: Rs 8,500 per 1,000 sticks
Popular longer and premium cigarettes, including Gold Flake Premium, Red & White King Size, Classic, Marlboro variants, Navy Cut longer sticks, and flavoured cigarettes like Ice Burst, are expected to face the largest price increases. Shorter cigarettes and non-filter varieties will see comparatively smaller hikes.
The new excise duty will be charged in addition to GST, which ranges from 18% to 40% depending on the product. The GST compensation cess on tobacco has been withdrawn. Even after the changes, total taxes on cigarettes in India will amount to roughly 53% of the retail price, still below the 75% threshold recommended by the World Health Organization to discourage smoking.
Cigarette manufacturers have a short transition period to update prices, production systems, and packaging, with the changes coming into effect on February 1, 2026.
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