Cigarette, Tobacco Prices Soar: New Rates Effective Today, Smokers Face Shocking Blow

Business
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News18•01-02-2026, 14:57
Cigarette, Tobacco Prices Soar: New Rates Effective Today, Smokers Face Shocking Blow
- •Cigarette, tobacco products, and pan masala prices increased significantly from February 1, 2026, due to new tax policies.
- •The government replaced the 28% GST with a maximum 40% tax, plus excise duty and health/national security cess.
- •A packet previously costing Rs. 18 could now rise to Rs. 70-72, with tax varying by cigarette length and filter type.
- •Strict regulations for pan masala include tax based on MRP, mandatory registration, and CCTV cameras at packing machines to curb evasion.
- •The total tax burden on pan masala has reached almost 88%, aiming to protect public health and fund national security/health sectors.
Why It Matters: New tax policies have drastically increased prices of cigarettes, tobacco, and pan masala from today.
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