India puts excise duty on tobacco products from February 1

The government has imposed additional excise duty on tobacco products from 1 February 2026, making cigarettes costlier for an estimated 10 crore smokers in the world's most populous country.

Late on Wednesday, the finance ministry notified the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines



(Capacity Determination and Collection of Duty) Rules, 2026. That imposed an excise duty of ₹2,050-8,500 per 1,000 sticks, depending on cigarette length, effective 1 February.

Stocks of India's largest cigarette makers ITC and Godfrey Philips fell as much as 8% after the govt imposed a cigarette tax on top of 40% GST.