Cigarettes, Tobacco Costlier from Feb 1, 2026: New Excise Duty Imposed

• Central government imposes new excise duty on cigarettes, pan masala, and tobacco products, effective February 1, 2026.
• Excise duty ranges from Rs 2050 to Rs 8500 per thousand sticks for cigarettes, based on length.
• This new duty replaces temporary taxes and comes after the 'Central Excise (Amendment) Bill 2025' approval.
• India's current cigarette tax (53%) is significantly below the World Health Organization's 75% benchmark.
• Shares of cigarette manufacturers like ITC, VST Industries, and Godfrey Phillips India may decline due to potential sales impact.

Why It Matters: New excise duty from Feb 1, 2026, will make cigarettes and tobacco products more expensive, impacting manufacturers.