Tobacco taxes: How India’s new excise rules will push cigarette prices higher | Cigarette prices

From February 1, 2026, cigarettes and tobacco products will be taxed under a new excise framework. The government has scrapped the GST compensation cess and replaced it with a new excise duty, a move that could sharply raise cigarette prices. Here’s what changes, what stays, and how much more smokers may end up paying.