Cigarette prices have gone up significantly after the excise duty hike from February 1, burning a hole in your pocket. The hike depends on the length of the cigarette sticks – the longer, the more expensive.
Starting February 1, an additional duty on cigarettes is applied above the 40 percent Goods and Services Tax (GST).
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According to a government statement:
1. Unfiltered cigarettes shorter than 65 mm will be subject to an excise duty of Rs ₹2,050 for 1,000 sticks
2. Filtered cigarettes shorter than 65 mm will be taxed ₹2100 for 1000 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 rising up to ₹8,500 for 1,000 sticks.
Category of cigarettesAdditional duty over 40 percent GSTShort cigarettes without filter (up to 65 mm) ₹2.05 per piece Short cigarettes with filter (up to 65 mm) ₹2.10 per stick Cigarettes of medium length (65-70 mm) ₹3.6-4 per long, premium cigarette (70-75mm) ₹5.4 on stickother’s category Higher duty ₹8.5 per stick
How much will different brands of cigarettes cost now?
With the introduction of additional consumption tax, cigarette prices have increased by at least a minimum ₹22 to 25 in a pack of 10 sticks.
Quoting distributors, new agency PTI said prices of premium 76mm cigarettes will increase by ₹50- ₹55 for a pack of 10 bars, depending on the brand.
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While manufacturers are yet to issue revised MRP statements, distributors have started charging retailers old stock with 40% GST, PTI reported.
Distributors are reportedly expecting fresh stocks to be lifted with the new MRP from Monday.
Here’s what the new prices may look like, according to PTI:
MarkCostsWills Navy Cut (76mm in length, 10 bars) ₹120 per pack (10 sticks); ₹95 gold flake lights between ₹220 to ₹225 per pack; ₹170 Wills ClassicBetween ₹220 to ₹225 per pack; ₹170 Wills Classic MildsBetween ₹220 to ₹225 per pack; ₹170 Classic Connect Cigarette ₹350 (for a pack of 20 bars); ₹300
Distributors expect cigarette packs with new MRPs to arrive from manufacturers by the end of the month.
“Some of the companies have already suspended their stocks. They will start releasing them after accounting for the new tax structures,” a trader told PTI.
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According to the All India Consumer Products Distributors Federation (AICPDF), there are about 8,000 to 9,000 cigarette and tobacco product dealers in the country.
Additional excise duty on cigarettes and tobacco products and health cess on pan masala over the top 40 per cent GST rate came into effect from February 1.
Attention!
Distributors fear that price increases may lead to smuggling and the spread of counterfeit products.
AICPDF, which claims to represent more than 4.5 million distributors and more than 1.3 million kirana and retail outlets across India, has warned that a sharp increase in taxes on legal products could damage the traditional brick-and-mortar retail system, which already faces stiff competition from online platforms and fast-food giants.
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“Tobacco products are among the few categories where small traders are still relevant. If this too falls into the hands of illicit networks, what is left for honest retailers? It’s not just about taxation – it’s about survival,” said AICPDF President D Patil.