India, Jan. 1 -- Late on Wednesday, the government announced a hike in excise duty on cigarettes, bidis and other tobacco products, a move that immediately caught the market's attention. The Finance Ministry of India notified that a 40 percent GST will be levied, from the existing 28 percent, along with the subsuming of excise and NCCD, effective 1st February 2026.

In addition, the ministry clarified that a specific excise duty ranging from Rs. 2,050 to Rs. 8,500 per 1,000 cigarette sticks, depending on cigarette length, will also come into force from the same date.

For investors, the big question now is whether this will be the final tax change or if additional cess or duties could follow - and what the overall tax burden will eventual...