Cigarette Price Hike: The cost of your favourite cigarette could soon rise. Starting from February 1, 2026 cigarette prices in India are set to increase, following the government's introduction of a new tax system.
This new system reinstates a separate central excise duty on cigarettes, in addition to the existing Goods and Services Tax (GST).
The amount you pay will not only depend on the brand but also significantly on the length of the cigarette. This marks the first major overhaul in cigarette taxation since the introduction of GST in 2017.
Cigarette Price Hike: Why Will Cigarettes Cost More?
Previously, cigarettes were primarily taxed through GST, along with a value-based levy. From February 1, the government will reintroduce a specific excise duty. This will be charged per 1,000 cigarettes and will vary depending on whether the cigarette is filtered or non-filtered, as well as its length, including the filter (measured in millimetres).
Excise duties will range from Rs 2,050 to Rs 8,500 per 1,000 cigarettes, meaning longer cigarettes will be subject to a higher tax.
Cigarette Price Hike: How Much Will Each Cigarette Be Taxed?
- Short non-filter cigarettes up to 65 mm will attract an excise duty of approximately Rs 2.05 per stick.
- Short filter cigarettes of the same length will incur an excise duty of around Rs 2.10 per stick.
- Medium-length cigarettes (between 65 mm and 70 mm) will face a duty of roughly Rs 3.60 to Rs 4 per stick.
- Longer cigarettes (between 70 mm and 75 mm) will attract a duty of around Rs 5.40 per stick.
There is also a higher slab of Rs 8,500 per 1,000 sticks, which applies to non-standard or unique designs. However, this is unlikely to affect most popular brands.
Cigarette Price Hike: Which Cigarettes Brands Will Cost More? Check Details
- Longer and premium cigarettes are expected to see the largest price hikes.
- This includes many king-size and filter variants sold in India, such as Gold Flake Premium, Red & White King Size, Classic, Marlboro variants, Navy Cut long sticks, and flavoured cigarettes like Ice Burst.
- Shorter cigarettes and non-filter sticks are expected to experience smaller increases in comparison.
- The excise duty will be applied on top of the existing GST, which is set at either 18 per cent or 40 per cent , depending on the type of product. At the same time, the GST compensation cess on tobacco has been withdrawn.
- Despite these changes, total taxes on cigarettes in India will still make up around 53 per cent of the retail price. This remains lower than the World Health Organisation's recommended target of 75 per cent , aimed at reducing smoking rates.
All changes will take effect on February 1, 2026. Manufacturers will have a short period to adjust prices, update their systems, and make necessary production and packaging changes before higher prices appear in shops.