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This is not just about taxationit is about survival, he said.From February 2026, cigarettes and tobacco products will attract additional excise duty and cess over and above the highest 40% GST slab, replacing the current structure of 28% GST plus compensation cess.The Central Excise Act has also been amended to impose a per-stick excise duty on cigarettes, with rates varying according to length.

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[135] Michael LaFaive, "Smoke and Terrors," Mackinac Center for Public Policy, accessed November 23, 2008