New Delhi: The central government has announced the imposition of excise duty on tobacco and tobacco products which will come into effect from February 1 2026.  So if you smoke cigarettes you may have to pay more now. How much more you will have to pay will depend not only on the cigarette brand but also on the length of the cigarette.

This is the highest tax on cigarettes since the implementation of GST in 2017. Excise tax will be levied on top of the 40% GST on cigarettes which will be determined based on the length of the cigarette and whether it has a filter or not. The longer the cigarette the more you will have to pay.
What Are The New Tax Rates?
According to the tax rules that will come into effect from February 1 the excise duty will be applied per 1000 cigarettes. How much will be levied will depend on the length of the cigarette.

Non-filter cigarettes up to 65 mm in length: Rs 2050 per thousand
Non-filter cigarettes more than 65 mm and up to 70 mm in length: Rs 3600 per thousand
Filter cigarettes length (including filter) up to 65 mm: Rs 2100 per thousand.
Filter cigarettes length (including filter) more than 65 mm and up to 70 mm: Rs 4000 per thousand.
Filter cigarettes length (including filter) more than 70 mm and up to 75 mm: Rs 5400 per thousand

Other cigarettes will have an excise duty of up to Rs 8500 per thousand. Cigarettes with tobacco options will have an excise duty of Rs 4006 per thousand. Similarly for tobacco alternatives a tax of 12.5% ​​or Rs 4006 per thousand whichever is higher will apply to cigarillos. For others 12.5% ​​or Rs 4006 per thousand whichever is higher will be applicable.
How Much Will The Price Of Each Cigarette Increase?
According to calculations based on the excise duty the price of non-filter short cigarettes (up to 65 mm) will increase by Rs 2.05. The price of filter short cigarettes (up to 65 mm) will increase by Rs 2.10. Cigarettes between 65-70 mm will see an increase of Rs 3 to Rs 4. Premium cigarettes (70-75 mm) may see an increase of up to Rs 5.
Which Cigarettes Will Be Most Affected?
Companies may pass the entire burden of the increased excise duty onto customers meaning consumers will have to pay more for cigarettes. This increase is likely to have a greater impact on premium longer and flavoured cigarettes. The governments objective is to prevent tax evasion in the tobacco market and increase government revenue by imposing extra duties on cigarettes.