Cigarette Prices to Soar: New Tax Based on Length to Hit Smokers Hard from 2026

• Cigarette prices are set to increase significantly from February 1, 2026, due to new excise duties.
• The new tax structure will determine excise duty based on the length of cigarettes, with longer variants incurring higher taxes.
• Cigarettes up to 65mm will face a lower tax rate of approximately Rs. 2,700 to Rs. 3,000 per 1,000 sticks.
• Longer cigarettes (70-75mm) will incur higher taxes (approx. Rs. 7,000/1,000 sticks), with the 'additional' category being the highest (Rs. 11,000/1,000 sticks).
• Retail prices could increase by approximately Rs. 2.7 to Rs. 11 per cigarette, depending on its length and tax bracket.

Why It Matters: Cigarette length will now dictate price; longer variants to cost significantly more from 2026.