Cigarette Tax Increase 2025. The government has levied an additional 16 per cent tax on tobacco, but experts say it should be raised to 75 per cent or more to reduce india’s cancer burden. According to fpmpam president dr shanmuganathan ganeson, increasing both the excise tax and minimum cigarette price will help curb tobacco consumption, boost.

As announced at the autumn budget 2024, the duty rate on all tobacco products will increase by the tobacco duty escalator of 2% above rpi inflation. In budget 2023, ms sitharaman announced a 16% rise in national calamity contingent duty (nccd) on cigarettes, which will make smoking more expensive.