At least the price of cigarettes has gone up ₹From 22 ₹25 on a packet of 10 sticks after the additional excise duty comes into effect from Sunday, February 1.
Distributors said premium cigarettes, 76 mm in length, will now cost Rs 50 to Rs 55 per pack of 10 sticks. (PTI)Distributors said the premium cigarette, 76 mm in length, will now cost more, with ₹50 and ₹55 has been added to the price per pack of 10 sticks depending on their specific brand, news agency PTI reported.
Manufacturers are yet to issue an announcement for the revised maximum retail price (MRP), but distributors have already started billing for the old stock at the new price, 40 per cent GST (goods and services tax).
While wholesale markets are closed on Sunday, distributors expect new stocks with new MRPs to enter the market from Monday.
Also Read | What gets cheaper and more expensive after Budget 2026. See full listDistributors expect cigarette packs with new MRPs from manufacturers by the end of this month.
More Read
“Some companies have already withheld their stocks. They will start releasing after billing under the new tax structure,” a stockist was quoted as saying.
According to the All India Consumer Product Distributors Federation (AICPDF), there are around 8,000 to 9,000 stockists of cigarettes and tobacco products across the country.
However, distributors are concerned that the price hike could lead to the proliferation of smuggling and counterfeit products.
More Read
The AICPDF, which claims to represent more than 4.5 lakh distributors and over 1.3 crore general stores and retail outlets across the country, has warned that the steep hike in tax on illegal goods could hurt the traditional, brick-and-mortar retail system, which is already facing tough competition from online and e-commerce platforms.
“Tobacco products are among the few categories where small shopkeepers are still relevant. If this too is pushed into the hands of illegal networks, what will be left for honest retailers? It’s not just about tax—it’s about survival,” D Patil, president of AICPDF, was quoted as saying by news agency PTI.
How much will a cigarette cost?Distributors reported that prices for Wills Navy Cut (76mm length), a popular medium-sized pack of cigarettes ₹95 per packet of 10 sticks, now probably costs approx ₹120 per pack.
Meanwhile, larger size cigarettes, 84 mm in length, such as Wills Classic, Wills Classic Milds, Gold Flake Lights, etc. ₹170 per package of 10 sticks, now expected to have a cost of Rs ₹220 and ₹225 per packet.
Slim cigarettes, such as classic connect cigarettes (97 mm in length), price ₹300 per packet of 20 sticks, is expected to cost ₹350
Additional excise duty on cigarettes and tobacco products and health cess on pan spices, on top of the maximum GST rate of 40 per cent, came into effect from February 1.
The levies replaced the previous 28 per cent GST and compensation cess, on such “sin goods”.
Under the new tax structure, small non-filter cigarettes (up to 65 mm in length) will attract additional duty. ₹2.05 per stick, small filter cigarettes of the same length will be charged around ₹2.10 per stick.
Meanwhile, medium-length, 65-70 mm, cigarettes will face an additional duty of approx. ₹From 3.6 ₹4 per stick, and long, premium cigarettes, length 70-75mm, approx ₹5.4 per stick.
Only unusual or non-standard cigarette designs will attract the highest duty ₹8.50 per stick. However, most popular cigarette brands will not fall under this slab.
In December last year, Parliament approved the imposition of such cess on pan masala and excise duty on tobacco.
