Desk Correspondent , Delhi - The Indian government has announced a significant hike in excise duty on tobacco products including cigarettes effective from February 1 2026. This move was detailed in a fresh notification aimed at increasing tax revenue while discouraging the consumption of harmful tobacco substances across the country. The new tax structure will lead to a visible rise in the retail prices of various cigarette lengths and other tobacco derivatives making them more expensive for the end consumer. Industry experts believe this step is part of a larger public health strategy to reduce tobacco addiction through higher pricing.

Market analysts suggest that the sudden increase in excise duty might impact the profit margins of major tobacco companies in the short term. Shares of leading cigarette manufacturers saw a slight dip following the announcement as investors began calculating the potential drop in sales volume. However history shows that demand for such products often remains stable despite price hikes. The government has also clarified that these additional funds will be utilized for various welfare schemes and healthcare initiatives specifically focusing on treating diseases related to tobacco use in rural and urban areas.

Anti-tobacco activists have welcomed the decision calling it a necessary measure to protect the younger generation from falling into the trap of smoking. They argue that higher taxes are one of the most effective ways to prevent minors from purchasing these products. On the other hand some local vendors worry that the price rise might lead to an increase in the illegal sale of smuggled or unbranded tobacco products. As the February deadline approaches retailers are preparing to update their stocks and price lists to comply with the new federal tax regulations issued by the Ministry of Finance.