Cigarettes new price
Cigarettes Cost ₹10, But How Much Do They Cost Now? The Government’s New Decision Will Increase The Price By This Much : The central government has announced the imposition of excise duty on tobacco and tobacco products, which will come into effect from February 1, 2026 . Therefore, if you smoke cigarettes, you may have to pay more. The amount you’ll have to pay will depend not only on the brand of cigarette but also on the length of the cigarette.
This is the highest tax on cigarettes since the implementation of GST in 2017. Cigarettes will be taxed on top of the 40% GST , with excise tax depend ing on the length of the cigarette and whether it has a filter. The longer the cigarette, the higher the tax.
According to the tax rules that came into effect on February 1st, excise duty will be levied per 1,000 cigarettes. The amount will depend on the length of the cigarette.
Non-filter cigarettes up to 65 mm in length will cost ₹2,050 per thousand.
Non-filter cigarettes, length more than 65 mm and up to 70 mm will cost ₹3,600 per thousand.
Filter cigarettes, up to 65 mm in length (including filter) will cost ₹2,100 per thousand.
Filter cigarettes, length (with filter) more than 65 mm and up to 70 mm will cost ₹4,000 per thousand.
Filter cigarettes, length (with filter) more than 70 mm and up to 75 mm will cost ₹5,400 per thousand.
Other cigarettes will be subject to an excise duty of up to ₹8,500 per thousand. Cigarettes containing tobacco substitutes will be subject to an excise duty of ₹4,006 per thousand.
Similarly, cigarillos containing tobacco substitutes will be subject to an excise duty of 12.5% or ₹4,006 per thousand, whichever is higher.
How much will the price of each cigarette increase?
Based on excise duty, the price of small non-filter cigarettes (up to 65 mm) will increase by ₹2.0. The price of cigarettes 65-70 mm will increase by ₹3-4. Premium cigarettes (70-75 mm) may increase by around ₹5.
How much will a 10 rupee cigarette cost now?
Experts say this government decision could lead to a 20 to 50 percent increase in cigarette prices. Small cigarettes could see a 20 percent increase, medium cigarettes could see a 30 percent increase, while premium cigarettes could see a 50 percent increase.
In this way, a 10 rupee cigarette could see a 2 rupee increase, making it available for 12 rupees. A 15 rupee cigarette could be available for 18 or 19 rupees. A 20 rupee cigarette could cost 23 to 25 rupees.
Which cigarettes will be most affected?
Companies may pass the entire burden of the excise duty increase onto consumers, resulting in consumers paying more for their cigarettes. This increase is likely to have a greater impact on premium, long, and flavored cigarettes. The government’s goal by imposing additional duties on cigarettes is to curb tax evasion in the tobacco market and increase government revenue.
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