How Much Will Cigarettes, Gutkha, Tobacco, And Bidis Cost Now?
For smokers, 2026 begins on a bitter note. India’s cigarettes, beedis and tobacco products are getting sharply costlier after the Central Excise (Amendment) Act, 2025, delivering heartbreak with every pack. While the move may not be loudly welcomed by the population, the truth is hard to ignore: the number of smokers remains bigger than ever. For millions, smoking isn’t a choice anymore, it’s routine. Ironically, the government continues to draw one of its largest sin-tax revenues from the cigarette industry itself. This heavy tax hit has blown through the market, rattling investors and tightening smokers’ wallets.
From the date of February 1, 2026, lighting up in India will charge you much more. The government has implemented an updated excise duty structure that is added to GST and has officially eliminated the old compensation cess. The statement is clear: the government wants to make tobacco first expensive, then dangerous. The tobacco industry is heavily taxed, as prices are kept high and hence revenue is also doubled. For smokers, it is an unwelcome awakening at the cash counter; for investors, it is a reminder that tobacco companies are always under threat of policy change. The smoke might die out, but the taxes would not, obviously.
Revised Excise Duty Breakdown (India)
No shock jumps: Despite viral claims of drastic price spikes, analysts expect gradual, brand-wise increases as companies pass on higher costs in phases.
Standard cigarettes (75–85 mm): Prices likely to rise by ₹2–3 per stick.
Lower-cost brands: Expected to see sharper hikes of 18–35%, hitting budget smokers the hardest.
Gold Flake Kings: ₹170 per pack of 10
Marlboro Advance Compact: ₹95 per pack of 10
Classic Milds: ₹340 per pack of 20
The tax hike extends well beyond cigarettes:
The solitary exception to the steep tax increases imposed on cigarettes and other tobacco products is bidis. Re 1 per 1,000 sticks is the excise duty that the government has set to protect the local bidi industry, and it has not changed. Although overall tobacco taxation in India is getting stricter, this move is mainly to ensure that workers who rely on bidi production for their livelihood are not laid off.
Disclaimer: SMOKING IS INJURIOUS TO HEALTH.
(With Inputs)
Also Read: Why Are ITC Shares Falling Today? How The New Excise Duty Left Investors And Smokers In Shock
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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