Smokers Face Huge Shock: New Excise Duty Hikes Tobacco Prices from Feb 1

• New excise duty replaces GST compensation cess on tobacco and pan masala from February 1.
• Prices of cigarettes and other tobacco products are set to increase significantly.
• Excise duty ranges from Rs. 2,050 to Rs. 8,500 per 1000 cigarettes, impacting cheaper brands more.
• Shares of tobacco companies like ITC and Godfrey Phillips fell following the announcement.
• Government aims to improve public health, reduce smoking, and align tax with WHO recommendations.

Why It Matters: Tobacco products will become significantly more expensive from February 1 due to new excise duties.