After the new excise duty regime kicked in, cigarette prices have gone up, with a pack of 10 sticks now costing at least Rs 22–25 more than before.This follows the government’s decision to raise taxes on cigarettes for the first time in nearly seven years, bringing India’s tobacco taxation closer to global public health norms. The new levies, approved by Parliament in December, will replace the existing GST compensation cess framework that has been in place since the rollout of the Goods and Services Tax (GST) in July 2017.

The increase in cigarette prices will vary depending on the length and type of cigarette.According to distributors, premium cigarettes of 76 mm length will now cost Rs 50–55 more 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% GST.With wholesale markets shut on Sunday, distributors expect fresh stock with new MRPs to be lifted from Monday onwards.According to news agency PTI, a packet of Wills Navy Cut (76 mm), earlier priced at Rs 95 per pack of 10 sticks, is expected to cost around Rs 120 per pack.Cigarettes of 84 mm length—such as Gold Flake Kings and Lights, Wills Classic and Wills Classic Milds—currently priced at Rs 170 per pack of 10 sticks, are expected to cost between Rs 220 and Rs 225 per pack. Similarly, slim cigarettes such as Classic Connect (97 mm), priced at Rs 300 for a pack of 20 sticks, are expected to have an MRP of around Rs 350, the report said.However, distributors fear that the price hikes could lead to increased smuggling and the spread of counterfeit products. According to the All India Cigarette and Tobacco Distributors Federation (AICPDF), there are around 8,000–9,000 stockists of cigarettes and tobacco products across the country.“Some companies have already put their stocks on hold. They will start releasing them after billing under the new tax structure,” a stockist told PTI.“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,” he said.From February 2026, cigarettes and tobacco products will attract additional excise duty and cess over and above the highest 40% GST slab, replacing the current structure of 28% GST plus compensation cess.The Central Excise Act has also been amended to impose a per-stick excise duty on cigarettes, with rates varying according to length.