February 06, 2026
In his Hindustan Times column, Vital Signs, Dr. Ramanan Laxminarayan writes that India’s recent increase in cigarette taxes is not just about boosting government revenue, but a public health and economic decision with long-term benefits.
India has raised excise taxes on cigarettes, leading to price increases of about 15–30 percent across popular brands. In simple terms, cigarettes will now cost noticeably more. This matters because decades of global evidence shows that higher tobacco prices reduce smoking, especially among young people and low-income groups. When cigarettes become less affordable, fewer people start smoking, and more people quit or smoke less.
Tobacco use causes an estimated 1.3–1.4 million deaths every year in India due to cancer, heart disease, lung disease, and tuberculosis. It also places a heavy financial burden on families, many of whom pay medical costs out of pocket. Raising tobacco taxes is one of the most effective ways to reduce these harms while still increasing public revenue.
Dr. Laxminarayan notes that even after this increase, tobacco taxes in India remain below global best-practice levels recommended by the World Health Organization. Still, the move sends a strong signal that population health is not separate from economic growth, but a foundation for it. “Making products that kill people steadily less affordable is not a distraction from development. It is an important step towards Viksit Bharat, expressed through the tax code.”
Read it here.
