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India's New Cigarette Tax Set to Hit Retail Prices

1/1/2026

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Summary

Story summary

India will impose a new cigarette excise duty ranging from 2,050 to 8,500 rupees per thousand sticks, effective February 1, 2025.
The duty follows approval of the Central Excise (Amendment) Bill 2025, which replaces a temporary levy on tobacco products.
Together with a 40% goods and services tax, total taxes on cigarettes rise to about 53% of retail prices and may affect ITC and Godfrey Phillips India.

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Story summary

India will impose a new cigarette excise duty ranging from 2,050 to 8,500 rupees per thousand sticks, effective February 1, 2025.
The duty follows approval of the Central Excise (Amendment) Bill 2025, which replaces a temporary levy on tobacco products.
Together with a 40% goods and services tax, total taxes on cigarettes rise to about 53% of retail prices and may affect ITC and Godfrey Phillips India.