Cigarette, Pan Masala Prices Soar Feb 1: Govt Hikes Excise After 7 Years

• Cigarettes, Pan Masala, and other tobacco products to become significantly costlier from February 1, 2026.
• Government reintroduces substantial excise duties on tobacco after a 7-year freeze, citing public health and revenue.
• New excise duties range from Rs 2,050 to Rs 8,500 per 1,000 cigarette sticks, plus up to 40% GST.
• Smokeless tobacco products will face a new machine-capacity-based excise system to curb tax evasion.
• Prices are expected to rise by 20-30%, with longer and filtered cigarettes seeing the sharpest hikes.

Why It Matters: Tobacco prices will jump significantly from Feb 1, 2026, due to major government excise duty hikes.