Cigarette prices will increase according to the length, find out how expensive your cigarette will be?
Starting February 1, 2026, cigarette smokers' pockets will be lighter. In addition to the GST, the government has decided to impose a new excise duty based on the length of cigarettes. The new rules will see a smaller tax increase on short cigarettes, but the prices of long and premium cigarettes will increase significantly. This is the biggest change in tobacco tax since 2017.
Cigarette tax increase 2026: If you smoke, then from next month i.e. 1 February 2026, this habit of yours is going to cost you more than ever before.
The central government has made a major and important change in the tax structure on tobacco products, especially cigarettes. Till now, you used to estimate the price by looking at the brand or packet of cigarettes, but now the 'length' of the cigarette will decide how much you will have to pay to the shopkeeper.
Apart from the Goods and Services Tax (GST), the government has once again decided to impose 'Specific Central Excise Duty', which will be directly based on the size and category of the cigarette.
The longer the cigarette, the higher the tax
Under the new system being implemented by the government, excise duty will be calculated per 1,000 cigarette sticks. The tax on each cigarette will now vary depending on its length.
If you smoke cigarettes shorter than 65 mm without a filter, they will now incur an excise duty of ₹2.05 per cigarette. However, if the cigarettes are filtered but shorter than 65 mm, the tax will be ₹2.10 per stick.
For mid-range filter cigarettes (65 to 70 mm), you'll only have to pay excise duty of ₹3.60 to ₹4 per cigarette. Those who use 70 to 75 mm cigarettes will incur a burden of ₹5.40 per stick. Those who smoke premium and long cigarettes (over 75 mm) will be most affected, where the tax could be ₹8.50 or more.
The entire equation changed after 2017
This new tax system on tobacco products is considered the biggest change since 2017. When the GST was implemented in the country, the excise duty on cigarettes was reduced to a nominal amount.
At that time, it was only ₹5 per 1,000 sticks in most categories, which was symbolic. However, the new structure now being implemented is extremely strict.
Surprisingly, this new excise duty will be levied on top of the existing GST. Tobacco products already attract a GST of 18 to 40 percent.
Although the government has removed the GST compensation cess, the addition of the new tax will still result in a total tax burden of approximately 53 percent of the product price.
What is the reason behind the government's strictness?
The Finance Ministry has several clear objectives behind this strict decision. The first and foremost reason is public health. The government believes that increasing the price of cigarettes will reduce their consumption, thereby reducing long-term health risks. Furthermore, curbing tax evasion and increasing government revenue is also a key objective.
Globally, the World Health Organization (WHO) recommends that at least 75 percent of the retail price of tobacco products be taxed.
Despite this significant increase, India's overall tax burden remains below the WHO standard. The government is striving to gradually align its tobacco tax policy with these global standards to improve public health.