Cigarette Prices Hike by Up to ₹55 per Pack After Excise Duty Increase

Smokers will have to shell out more as additional excise duty on cigarettes came into effect from Monday, February 1. The price of a 10-cigarette pack has risen by ₹22–₹25 at minimum, with premium brands seeing increases of up to ₹50–₹55 per pack.

New Rates by Brand:
Distributors report that 76mm premium cigarettes are now costlier by ₹50–₹55 per 10-cigarette pack, depending on the brand. Although companies have not yet officially announced the new Maximum Retail Price (MRP), distributors are billing old stock to retailers with 40% GST included. With the wholesale market closed on Sunday, traders expect the new priced stock to reach the market from Monday.

For example, mid-range popular cigarettes such as Wills Navy Cut, which previously cost ₹95 per pack, may now be priced around ₹120 per pack. Similarly, 84mm brands like Gold Flake Lights, Wills Classic, and Wills Classic Milds, previously priced at ₹170 per pack, may now cost ₹220–₹225 per pack. Thin cigarettes like Classic Connect, sold at ₹300 per 20-cigarette pack earlier, could now be priced around ₹350. Companies are expected to release new-price packs to the market by the end of the month.

Impact on Tobacco Products:
The additional excise duty on cigarettes and other tobacco products, as well as a health cess on pan masala, has been implemented from February 1. This is in addition to the highest GST rate of 40%. The new levy replaces the 28% GST and compensation cess that has been in effect since July 1, 2017. Furthermore, a new MRP-based assessment system for chewable tobacco, filter khaini, scented zarda, and gutkha has been introduced. Under this system, GST will be calculated based on the declared retail sale price per packet.

Smokers and tobacco consumers should expect a noticeable increase in prices across all segments in the coming weeks due to these changes.