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How High Are Cigarette Tax Rates in Your State? The government may soon raise GST on cigarettes and tobacco products as the current compensation cess ends in March 2026. Officials aim to sustain tax revenue without a new cess. Currently taxed The rise in black market tobacco and cigarette sales has seen a large hit to the federal budget, costing the Commonwealth $6.7 billion in lost revenue annually. Tax increases have lifted the Governments around the world have a toxic love hate relationship with cigarettes Tobacco Taxes: Market Shifts toward Lower Taxed Products Continue to Reduce Federal Revenue U.S. GAO Tobacco tax: good or bad? ON POLICY Africa

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