Union Finance Minister Nirmala Sitharaman presented the budget for the financial year 2026-27. She announced the imposition of new taxes on tobacco products and cigarettes, which will be effective from February 1.
Citizens are curious about the increase in cigarette prices. Earlier, 28% GST and the compensation cess applicable since 2017 were levied on cigarettes. Due to the new tax, there is a possibility of an increase in cigarette prices.
By abolishing the old tax system, under the new scheme, 40% GST, excise duty, and health and national security cess will be levied on cigarettes. As a result, there will be a significant increase in the price of each cigarette.
Now, an excise duty of 2 to 3 rupees will be applicable on a ten-rupee cigarette. Consequently, the price of these cigarettes is likely to increase to 12 to 13 rupees.
Earlier, the price of a pack of 10 cigarettes was 100 rupees, now it is expected to increase to 130 to 140 rupees. Premium cigarettes will also become more expensive, with an increase of 3.6 to 4 rupees per cigarette.