With 40% Increase In Tax On Tobacco Products, Cigarettes Will Now Cost…

After the new excise duty regime, cigarette prices are set to increase. A pack of 10 sticks will now cost at least ₹20-₹25 more than before. This move follows the government’s decision to raise taxes on cigarettes for the first time in seven years. Here’s everything you need to know about this latest development.

New Excise Duty Raises Cigarette Prices In India 

Following the implementation of additional excise duty from 1 February, cigarette prices have increased by at least ₹22 to ₹25 per pack of 10 sticks. According to a report by the Hindustan Times, premium cigarettes, 76 mm in length, will now cost more. An extra ₹50 to ₹55 will now be added to the price per pack. However, the final price will also depend on the brand.

According to a report by The Times of India, this decision was taken by the government for the first time in seven years. They have raised taxes to bring India’s tobacco taxation closer to global public health norms. The new levies, approved by Parliament in December, will also replace the existing GST compensation cess framework. This framework has been in place since the rollout of the Goods and Services Tax (GST) in July 2017.

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Brand-Wise Price Of Cigarettes 

As per a report by Hindustan Times, manufacturers are yet to issue any official declarations for the MRP. However, distributors have already begun selling old stock at new prices with 40% GST. According to Distributors a packet of Wills Navy Cut (76 mm length), which is currently priced at ₹95 per pack of 10 sticks, will now cost around ₹120 per pack.

On the other hand, large-sized cigarettes with 84 mm in length,  such as Wills Classic, Wills Classic Milds and Gold Flake Lights, are priced at ₹170 per pack of 10 sticks. After the new rule, these packs are expected to sell for between ₹220 and ₹225 per pack. Slim cigarettes such as Classic Connect (97 mm in length), which are priced at ₹300 per pack of 20 sticks, will cost smokers around ₹350.

From February 2026, cigarettes and tobacco products will attract additional excise duty and cess over and above the highest 40% GST slab. This will replace the current structure of 28% GST plus compensation cess.

Also Read: 90’s Kids Rejoice As Vikas Khanna & Ranveer Brar Find Phantom Sweet Cigarettes In A Shop!

So what do you think of this new cigarette price hike? Do share your thoughts with us in the comments section below!

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