On 31-12-2025, the Finance Ministry issued a notification announcing Central Excise Duty on tobacco products. The notification covers cigarettes, cigarillos, chewing tobacco, gutkha, snuff, smoking mixtures, hukkah tobacco, reconstituted tobacco, and other related preparations.
The revised rates on the goods will be applicable from 1-2-2026.
Key Highlights:
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The notification was notified by the Finance Ministry exercising its powers under Section 5A(1) of the Central Excise Act, 1944.
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The Ministry emphasised that the changes were introduced in the public interest, with the objective of rationalizing excise duties across various categories of tobacco products. These include cigarettes, cigars, chewing tobacco, gutkha, snuff, and reconstituted tobacco.
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Excise Duty Rates have been revised for different categories of tobacco products, with detailed slabs as follows:
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Cigarettes
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Non-filter cigarettes:
○ Up to 65 mm: ₹2050 per thousand
○ 65—70 mm: ₹3600 per thousand
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Filter cigarettes:
○ Up to 65 mm: ₹2100 per thousand
○ 65—70 mm: ₹4000 per thousand
○ 70—75 mm: ₹5400 per thousand
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Other categories: ₹8500 per thousand
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Cigarettes of tobacco substitutes: ₹4006 per thousand
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Cigarillos & Other Tobacco Substitutes
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Cigarillos: 12.5% or ₹4006 per thousand, whichever is higher
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Other substitutes: 12.5% or ₹4006 per thousand, whichever is higher
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Traditional Tobacco Products
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Hukkah/Gudaku tobacco: 33%
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Smoking mixtures for pipes/cigarettes: 279%
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Chewing tobacco & Jarda scented tobacco: 82%
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Gutkha: 91%
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Snuff & preparations containing snuff: 60.5%
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Cut tobacco: 8%
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Tobacco extracts/essence: 57%
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Reconstituted & Other Tobacco
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Homogenised/reconstituted tobacco: 60.5%
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Preparations containing chewing tobacco: 60.5%
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Other goods (excluding Gutkha): 81%
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Tobacco products under Chapter 2404: 60.5%
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This Notification supersedes Notification No. 3/2019-Central Excise issued on 6-7-2019.