TII has slammed the government’s sharp excise duty hike on cigarettes, calling it “shocked and surprised” and warning of serious fallout for the legal tobacco industry. The industry body says the move contradicts assurances of a revenue-neutral tax transition and risks accelerating the growth of illicit cigarette trade. From February 1, 2026, revised excise duties and a new cess will come into force, potentially pushing cigarette prices up by 20–30%.