Goa, Jan. 1 -- In a move targeting one of India's biggest public health challenges, the government has imposed excise duty on tobacco products, including cigarettes, effective February 1, 2026. Shares of major players ITC and Godfrey Philips tumbled as much as 8% on the announcement, signaling tough times ahead for the industry.

Late Wednesday, the finance ministry notified theChewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026. Under the rules, excise duty ranges from Rs.2,050 to Rs.8,500 per 1,000 cigarette sticks, scaled by length. This layers on top of the existing 40% Goods and Services Tax (GST), pushing retail prices higher for an estimated 10 crore smokers...