Prices of all tobacco products including cigarettes and gutkha will increase, new tax will be implemented from February 1

New Delhi: If you consume cigarettes or gutkha, then this news is very important for you. The government has decided to increase the tax on tobacco products from February 1, 2026, due to which cigarettes, gutkha and other tobacco products will become expensive. The Finance Ministry says that this step is necessary to treat diseases caused by tobacco and to prevent tax evasion.

New tax rule on cigarettes

The Central Government has issued a notification to increase excise duty on cigarettes and tobacco related products. According to the new rule, additional tax on cigarettes will now range from Rs 2,050 to Rs 8,500 on a pack of 1,000 sticks. This amount will be decided according to the length and type of cigarette. It is noteworthy that this tax will be imposed in addition to the already applicable GST (which is up to 40 percent), due to which the total price is certain to increase.

Long and filter cigarettes will be more expensive

Long and filter cigarettes will be most affected. Companies will pass the burden of increased duty directly on the customers, due to which there will be a clear increase in the prices of cigarettes at the shops. The government has again strengthened the excise duty after almost seven years. Earlier, before the implementation of GST, the tax on cigarettes was increased every year. The Supreme Court has also made it clear that both GST and excise duty can be applied on cigarettes.

Tax on gutkha and edible tobacco also

The government has also made a rule to impose new tax on gutkha, zarda and edible tobacco. The tax rate will depend on the packing capacity of the machine. The faster and more the packing, the more tax will have to be paid. The Finance Ministry says that tax evasion is common in the tobacco industry, hence this step is necessary.

Changes in GST Cess

The government has removed the GST compensation cess on tobacco products and now it has been reduced to zero. The GST rate has been simplified and now only 18 percent or 40 percent slabs will be applicable. The 28 percent slab has been removed.

purpose of government

Finance Minister Nirmala Sitharaman told in Parliament that the purpose of increasing tax on tobacco is to wean people away from this habit. Higher prices will reduce tobacco use. Along with this, the states will also get the amount received from the tax and many farmers have left tobacco farming and adopted other crops.

impact on common people

After this decision, those buying tobacco products will have to spend more money. Companies have some time before February 1, but after that new rates will be applicable in the market. In such a situation, if you consume cigarettes or gutkha, then in the coming days you will see its direct impact on your pocket.