Tobacco Tax Hikes in India 2026: Shocking Price Hikes and New Excise Duty Stun Consumers

Introduction Tobacco Tax reforms took center stage in India on February 1, 2026, with the enactment of a major change in the taxation of tobacco products through the Central Excise (Amendment) Bill, 2025. This reform amends the previously existing system of GST compensation cess by introducing a new regime of excise duties that would raise the