New excise duty on tobacco products: Cigarette prices to increase up to Rs 55 per pack

After the caller excise work authorities kicked in, cigaret prices person gone up, with a battalion of 10 sticks present costing astatine slightest Rs 22–25 much than before.This follows the government’s determination to rise taxes connected cigarettes for the archetypal clip successful astir 7 years, bringing India’s baccy taxation person to planetary nationalist wellness norms.

The caller levies, approved by Parliament successful December, volition regenerate the existing GST compensation cess model that has been successful spot since the rollout of the Goods and Services Tax (GST) successful July 2017.

The summation successful cigaret prices volition alteration depending connected the magnitude and benignant of cigarette.According to distributors, premium cigarettes of 76 mm magnitude volition present outgo Rs 50–55 much per battalion of 10 sticks, depending connected the brand.

While manufacturers are yet to contented revised MRP declarations, distributors person begun billing aged banal to retailers with 40% GST.With wholesale markets unopen connected Sunday, distributors expect caller banal with caller MRPs to beryllium lifted from Monday onwards.According to quality bureau PTI, a packet of Wills Navy Cut (76 mm), earlier priced astatine Rs 95 per battalion of 10 sticks, is expected to outgo astir Rs 120 per pack.Cigarettes of 84 mm length—such arsenic Gold Flake Kings and Lights, Wills Classic and Wills Classic Milds—currently priced astatine Rs 170 per battalion of 10 sticks, are expected to outgo betwixt Rs 220 and Rs 225 per pack.

Similarly, slim cigarettes specified arsenic Classic Connect (97 mm), priced astatine Rs 300 for a battalion of 20 sticks, are expected to person an MRP of astir Rs 350, the study said.However, distributors fearfulness that the terms hikes could pb to accrued smuggling and the dispersed of counterfeit products. According to the All India Cigarette and Tobacco Distributors Federation (AICPDF), determination are astir 8,000–9,000 stockists of cigarettes and baccy products crossed the country.“Some companies person already enactment their stocks connected hold. They volition commencement releasing them aft billing nether the caller taxation structure,” a stockist told PTI.“Tobacco products are among the fewer categories wherever tiny shopkeepers are inactive relevant. If this excessively is pushed into the hands of illicit networks, what volition beryllium near for honorable retailers? This is not conscionable astir taxation—it is astir survival,” helium said.From February 2026, cigarettes and baccy products volition pull further excise work and cess implicit and supra the highest 40% GST slab, replacing the existent operation of 28% GST positive compensation cess.The Central Excise Act has besides been amended to enforce a per-stick excise work connected cigarettes, with rates varying according to length.