Government Amends Central Excise Duties for Tobacco Products from February 2026

The Ministry of Finance has issued several important amendments regarding the excise duties on tobacco products, effective from February 1, 2026. These changes aim to improve the collection of excise duty on chewing tobacco, jarda scented tobacco, and gutkha, as well as on various other tobacco products.

The Notification No. 04/2025-Central Excise (N.T.) Dated 31st December, 2025, clarifies that excise duty will be levied on chewing tobacco (tariff item 2403 99 10), jarda scented tobacco (tariff item 2403 99 30), and gutkha (tariff item 2403 99 90) manufactured with the aid of packing machines and packed in pouches.

For the same, the government has introduced new rules called the Chewing Tobacco, Jarda Scented Tobacco, and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026, through Notification No. 05/2025-Central Excise (N.T.) Dated 31st December, 2025.

The government has revised the central duty rates for several tobacco products as the compensation cess ends. The highest excise duty is being levied in Gutkha at 91%. Chewing tobacco and Jarda Scented tobacco will attract 82% duty. The cigarettes will be taxed according to their length and filter, ranging between Rs 2,050 and Rs 8,500 per 1,000 sticks. These rates are set to come into effect in February 2026.

Refer to the official notifications for more information.