For a change, no increase in cigarette prices in this year's Budget Experts say the likelihood of a tax hike for tobacco products and cigarettes was low in this year's budget because it was hiked sharply in Budget 2020 Manoj Sharma | February 2, 2021 | Updated 16:57 IST Cigarettes and tobacco currently attract 28 per cent GST In a relief to smokers, no new tax has been announced on cigarette and other tobacco products in this year's Budget. There were speculations before the Budget that the Centre will hike sin tax in order to increase revenue amid financial crunch in wake of coronavirus pandemic. The government had raised cigarette prices sharply in Budget 2020.