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flag India raises tobacco taxes Feb. 1, 2026, increasing cigarette and pan masala costs to cut usage and boost health funding.

flag Starting February 1, 2026, India will raise tobacco taxes with new excise duties on cigarettes and a health cess on pan masala, replacing the previous GST and compensation cess. flag Cigarette prices will rise based on length and filtering, with duties ranging from ₹2.05 to ₹8.50 per stick. flag A new MRP-based tax system will prevent underreporting, while pan masala makers must register, install CCTV, and retain footage for 24 months. flag The total tax on pan masala remains at 88%, and cigarette sales are projected to drop 6–8% due to higher costs. flag Revenue will fund health and state programs, aiming to align India with global tobacco taxation standards.

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