By Admin 
Cigarette Pack Revised Price: This news is no less than a big shock for smokers. On the one hand, it is written in big letters on the cigarette packets that smoking is injurious to health, and on the other hand, it is now more burdensome on the pocket than ever before. By increasing the tax on tobacco products and cigarettes in Budget 2026-27, the government has spoiled the monthly budget of smokers.
Union Finance Minister Nirmala Sitharaman announced increase in tax on cigarettes and tobacco products in the budget, which has been implemented across the country from February 1. Since then, there has been a sharp rise in the prices of popular cigarette brands. The most shocking example of the recent increase is Stellar Define Paan, whose maximum retail price (MRP) for a pack of 20 cigarettes has increased from Rs 200 to Rs 380. That means there has been a huge jump of about 90 percent in the price.
Will cigarettes spoil the budget?
Similarly, the price of a pack of 10 cigarettes of Gold Flake Small has now increased from Rs 95 to Rs 140, which is an increase of about 47 percent. Such a sharp increase in prices has surprised the common consumers and has raised questions as to how expensive everyday smoking will be now.
Actually, this increase in cigarette prices is the result of comprehensive changes made in the structure of taxing tobacco products in India. In the budget, the tax slab has been revised on the basis of cigarette length, filter and other standards. Along with this, the tax burden on companies has increased further due to increase in cess and compliance costs. The companies have passed this additional cost directly on to the consumers, due to which almost all categories of cigarettes have become expensive.
What will be the price?
Its impact is clearly visible at the retail level. Where earlier the price of a cigarette used to be around Rs 10, now the same cigarette is available for Rs 12 to 13. That means an increase of Rs 2 to 3 per cigarette. According to analysts at ICICI Securities, the revised prices of cigarettes of 75 to 85 mm length have increased by 22 to 28 percent.
The government says that the purpose of imposing heavy taxes on cigarettes and tobacco products is to discourage those who start smoking for the first time and especially the youth. Policy makers are trying to reduce the demand for cigarettes by making them expensive. Health experts have also long believed that higher taxes are one of the most effective ways to reduce tobacco use.
Till now, tax on cigarettes was imposed under the framework decided in 2017, under which compensation cess was collected along with 28 percent GST. But in the recent budget, the government has made a major change in this system and implemented a three-tier tax structure on cigarettes. Under this, new excise duty is now being imposed on cigarettes, health and national security cess has also been added and the GST rate has been increased to 40 percent. Due to this changed tax structure, the tax burden on cigarette companies has increased significantly, which is directly impacting the consumers in the form of sharp increase in prices.
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