Cigarette Prices To Skyrocket: Excise Duty Jumps From ₹200 To ₹11,000 – Here’s How Much One Cigarette Will Cost
The Parliament’s Central Excise Amendment Bill 2025 drastically increases the tobacco duties, thus making the price of cigarettes more expensive, and the government gets more tax income while trying to decrease the consumption.
Bill Passage
The Central Excise Amendment Bill 2025 was passed by the Parliament, and the cigarette duty was raised from Rs 200-735 to Rs 2,700-11,000 per 1,000 sticks.
Tobacco Duty Rise
The new tax will make unmanufactured tobacco 70% to 75% taxed and is meant to discourage people from smoking after the GST cess is over.
Chewing Tobacco Hike
The tax on chewing tobacco skyrockets from 25% to 100%, and hookah tobacco goes from 25% to 40% under the new law.
Smoking Mixtures Surge
The duty on smoking mixtures for pipes/cigarettes rises from 60% to 325%, resulting in a drastic increase in tobacco product prices.
Price Impact
The retail price of cigarettes may jump from Rs 18 to Rs 72 per stick, leading to the achievement of health objectives and the growth of government revenue.
