Prices of Gutkha, Cigarette and other tobacco products are set to increase as the new Central Excise duty comes into force from 1 February 2025. The government also brought a notification to impose the new duty on Gutkha and related products. The government has significantly revised the excise duty rates for a wide range of tobacco products to maintain high tax incidence after the compensation cess ends. Gutkha now carries the highest duty at 91%, chewing tobacco and jarda scented tobacco will attract 82% duty. In case of Cigarettes, rates vary by length and filter type, ranging from Rs 2,050 to Rs 8,500 per thousand sticks.

Source: Indian Express January 01, 2026 19:40 UTC