Try GOLD - Free
'Tax hike raises tobacco smuggling risk'
Financial Express Bengaluru
|January 05, 2026
AN UNPRECEDENTED TAX hike, coupled with a new excise duty structure on tobacco, could lead to a surge in illicit trade of cigarettes and result in significant tax revenue losses for the country, experts said.
Earlier this week, the finance ministry notified amendments to the Central Excise Act, imposing an excise duty ranging from ₹2,050 to ₹8,500 per 1,000 sticks based on cigarette length, effective February 1. This duty will be over and above 40% GST. This would imply the overall tax hike of 60-70%, varying across lengths. Currently, the overall tax of about 50-55%, depending on the length. The unexpected tax hikes proposed in the transition
This story is from the January 05, 2026 edition of Financial Express Bengaluru.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Financial Express Bengaluru
Financial Express Bengaluru
Sebi nod to NSE IPO by month-end
THE SECURITIES AND Exchange Board of India (Sebi) is likely to issue by the end of this month a no-objection certificate (NoC) for the National Stock Exchange's (NSE) proposed public issue, bringing the much-anticipated IPO closer to reality.
1 min
January 11, 2026
Financial Express Bengaluru
Scientists find oldest poison residues on 60,000-year-old arrows
The poison hints at how far back in history humans have been using it for survival
2 mins
January 11, 2026
Financial Express Bengaluru
Tracing the stars with songlines
A pulsing and spatial Australian ethnic narrative arrives in the national capital
3 mins
January 11, 2026
Financial Express Bengaluru
Greenland’s party leaders dismiss US control proposal
GREENLAND'S PARTY LEADERS have rejected President Donald Trump’s repeated calls for the US to take control of the island, saying that Greenland’s future must be decided by its people.
1 min
January 11, 2026
Financial Express Bengaluru
Indian football needs to get house in order first
BE CAREFUL WHAT you wish for, you might just get it.
4 mins
January 11, 2026
Financial Express Bengaluru
Techno Paints to raise ₹500 cr via IPO in FY27
TECHNO PAINTS AND Chemicals is planning to raise ₹500 crore through an IPO in the next financial year, company sources said on Saturday.
1 min
January 11, 2026
Financial Express Bengaluru
India, EU express strong will to conclude FTA early
TRADE TALK
2 mins
January 11, 2026
Financial Express Bengaluru
Aus, India to join G7 meet on critical minerals
US TREASURY SECRETARY Scott Bessent said Australia, India, and several other countries would join a meeting of finance ministers from the Group of Seven (G7) advanced economies that he is hosting in Washington on Monday to discuss critical minerals.
1 min
January 11, 2026
Financial Express Bengaluru
Lemon Tree bifurcates businesses
LEMON TREE HOTELS on Saturday announced a reorganisation, leading to bifurcation of its businesses under two different entities.
1 min
January 11, 2026
Financial Express Bengaluru
A camera just for vlogging delight
With new launches, content creators can look forward to advanced tools
3 mins
January 11, 2026
Listen
Translate
Change font size