NEW DELHI, INDIA – Starting February 1, India will levy excise duties of 2,050 rupees (S$29) to 8,500 rupees per 1,000 sticks on cigarettes, scaled by length, the Finance Ministry announced in a December 31 order, potentially hiking prices for the nation’s estimated 100 million smokers.
This follows the December passage of the Central Excise (Amendment) Bill 2025, which swaps out a prior temporary tax on cigarettes and tobacco.
The new excise adds to a 40% goods and services tax (GST). Currently, total taxes claim about 53% of retail prices, including 28% GST and length-based levies, falling short of the World Health Organization’s 75% target to deter use. Major producers like ITC and Godfrey Phillips India face sales pressure from the hikes.