More News : Smoking is set to become more expensive in India as the central government has announced a major overhaul of the cigarette taxation system. From February 1, 2026, cigarette prices will be determined not only by brand but also by the length of the cigarette stick, marking the biggest change in tobacco taxation since the introduction of GST in 2017.
The Government of India has decided to reintroduce a specific central excise duty in a more effective manner. Under the new framework, excise duty will be levied per 1,000 cigarette sticks, with tax slabs linked directly to cigarette length.
🚬 Revised Length-Based Excise Duty (Indicative)
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Non-filter cigarettes below 65 mm: ₹2.05 per stick
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Filter cigarettes below 65 mm: ₹2.10 per stick
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65–70 mm (mid-range): ₹3.60–₹4.00 per stick
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70–75 mm: ₹5.40 per stick
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Above 75 mm (premium category): ₹8.50 or more per stick
In 2017, when GST was rolled out, excise duty on cigarettes was largely phased out. However, the government has now decided to bring it back firmly. The new excise duty will be imposed in addition to the existing 18% GST, pushing the total tax burden on cigarettes to nearly 53%, even after the removal of the compensation cess.
🏥 Public Health, Global Norms and Revenue
The government has cited three key objectives behind the move:
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Public Health: According to the World Health Organization (WHO), increasing the price of tobacco products is the most effective way to reduce smoking. Higher prices are expected to discourage consumption.
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Global Standards: WHO recommends that at least 75% of the retail price of tobacco products should be tax. India is moving closer to this benchmark with the new structure.
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Revenue Boost: The revised tax regime is expected to significantly increase government revenue, which can be used to strengthen healthcare services and fund anti-smoking awareness programmes.
📈 Impact on Smokers
Experts believe that length-based taxation will make premium cigarettes significantly costlier, while even low-cost brands will no longer remain cheap. As a result, smokers are likely to feel the pinch, and many may be forced to cut down or quit altogether.
The new tax structure will come into force on February 1, 2026, directly impacting cigarette prices across the country.
