Smoking cigarettes will soon become more expensive in India. From February 1, 2026, the government will impose a new specific excise duty on cigarettes, charged per 1,000 sticks and based on the length and type of cigarette. This move marks the biggest change in cigarette taxation since the introduction of GST in 2017.

Under the new system, shorter cigarettes will attract a lower duty, while longer and premium variants—especially filter and king-size cigarettes—will face higher taxes. The excise duty will range from ₹2,050 to ₹8,500 per 1,000 cigarettes, depending on size and design.

The new duty will be applied over and above GST, while the earlier GST compensation cess on tobacco products has been withdrawn. Overall, taxes will make up around 53% of the retail price of cigarettes, still below the World Health Organisation’s recommended 75% tax level to curb smoking.

Manufacturers have been given a short transition period to update pricing, packaging, and systems before consumers begin seeing higher prices at retail outlets.