Prices of cigarettes have surged significantly after the excise duty hike from February 1, burning a hole in your pocket. The hike depends on the length of cigarette sticks — the longer, the costlier.
Starting February 1, the additional duty on cigarettes is being applied over and above 40 percent Goods and Services Tax (GST).
According to the government’s notification:
1. Unfiltered cigarettes shorter than 65 mm will attract an excise duty of ₹₹2,050 per 1,000 sticks
2. Filtered cigarettes shorter than 65 mm will be taxed at ₹₹2100 per 1,000 sticks.
3. The duty on Medium-length cigarettes (65-70 mm) will be as high as ₹3.6-4 per stick.
4. Longer and premium variants will face even higher levies, with duties going up to ₹₹8,500 per 1,000 sticks.
| Cigarettes categories | Additional duty over and above 40 per cent GST |
|---|---|
| Short non-filter cigarettes (up to 65 mm) | ₹2.05 per stick |
| Short filter cigarettes (up to 65 mm) | ₹2.10 per stick |
| Medium-length cigarettes (65-70 mm) | ₹3.6-4 per stick |
| long, premium cigarettes (70-75 mm) | ₹5.4 per stick |
| ‘other’ category carries | Higher duty of ₹8.5 per stick |
How much will different cigarette brands cost now?
With the additional excise now in place, cigarette prices have increased by a minimum of ₹₹22 to ₹25 per pack of 10 sticks.
New agency PTI cited distributors as saying that prices of premium cigarettes of 76 mm length will increase by ₹50- ₹₹55 per pack of 10 sticks, depending on the brand.
While manufacturers are yet to issue revised MRP declarations, distributors have begun billing old stock to retailers with 40 per cent GST, PTI reported.
Distributors reportedly expect fresh stock with new MRP to be lifted from Monday onwards.
Here’s what new prices may look like, as per PTI:
| brand | Cost |
|---|---|
| Wills Navy Cut (76 mm in length, 10 sticks) | ₹₹120 per pack (10 sticks); ₹95 |
| Gold Flake Lights | Between ₹220 ₹Rs.225 per pack; ₹170 |
| Will’s Classic | Between ₹220 ₹Rs.225 per pack; ₹170 |
| Wills Classic Milds | Between ₹220 ₹Rs.225 per pack; ₹170 |
| Classic Connect Cigarette | ₹₹350 (for a pack of 20 sticks); ₹300 |
The distributors expect cigarette packs with new MRPs to arrive from the manufacturers by the end of the month.
“Some of the companies have already put their stocks on hold. They will start releasing after billing under new tax structures,” a stockist told PTI.
According to All India Consumer Products Distributors Federation (AICPDF), there are around 8,000 to 9,000 stockists of Cigarettes and tobacco products in the country.
An additional excise duty on cigarettes and tobacco products, and a health cess on pan masala, over and above the highest 40 per cent GST rate, has come into effect from February 1.
Caution!
Distributors fear that price hikes may lead to smuggling and the proliferation of counterfeit products.
AICPDF, which claims to represent over 4.5 lakh distributors and more than 1.3 crore kirana and retail outlets across India, cautioned that a sharp tax increase on legal sin products may harm the traditional, brick and mortar retail system, which are already facing a stiff competition from online platforms and quick-commerce giants.
“Tobacco products are among the few categories where small shopkeepers are still relevant. If this too is pushed into the hands of illicit networks, what will be left for honest retailers? This is not just about taxation-it is about survival,” AICPDF President D Patil said.
