India raises cigarette tax to curb consumption
pre-market1 source ↓written by the desknot a recommendation
- prices
- 100 million smokers
- alongside
- 40% GST
- increase in excise
- 25–40%
India’s parliament approved the Central Excise (Amendment) Bill 2025, raising cigarette prices for around 100 million smokers. The new tax, effective immediately, imposes a value-based tax of ₹2,700–11,000 per thousand sticks, alongside a 40% GST. This could lead to a 25–40% increase in excise duties, impacting retail prices significantly.
This reform aims to reduce consumption and may influence tobacco sector stocks as higher prices could deter buyers.
Not investment advice. For informational purposes only.