Excise Duty on Unmanufactured Tobacco

Government Decision

18% excise duty withdrawn on:

• Unbranded
• Non-retail packed
• Unmanufactured tobacco

Effective

1 February 2026

Continues

18% duty on:

• Branded tobacco
• Retail packed tobacco

Cigarettes

No change in excise duty.

UPSC GS-III

Taxation Policy