By Admin 
Budget 2026: With the presentation of Union Budget 2026-27, the government has given a big blow to tobacco users. Finance Minister Nirmala Sitharaman has announced a new tax structure on cigarettes and other tobacco products. This new structure has come into effect immediately from February 1. The result of this is that there is a huge increase in the prices of all categories of cigarettes.
Why did cigarette prices increase overnight?
Till now, cigarettes were taxed under a system that included 28% GST and a compensation cess. This was in effect from 2017. Let us tell you that now that system has been abolished and under the new system, a combination of new excise duty, health and national security cess and 40% higher GST will be applicable on cigarettes. This three-layer structure, called the tax triangle, has pushed up all types of prices rapidly.
How much will you get for 10 cigarettes?
Cigarettes which used to cost around ₹10 earlier will now be quite expensive. A new excise duty of about ₹2 to ₹3 has been added on every cigarette, due to which the price has increased to about ₹12 to 13 per cigarette. Regular smokers feel the real effect when they buy the whole pack. A pack of 10 cigarettes which used to cost around ₹100 earlier will now cost around ₹130 to ₹140 depending on the brand and retailer.
More impact on long and premium cigarettes
The tax has been increased according to the length of the cigarette. This has had more impact on long or premium cigarettes. 65-70 mm cigarettes will now attract additional duty of approximately ₹3.6 to ₹4 per stick. Along with this, 70-75 mm cigarettes will be more expensive by about Rs 5.4 per stick.
Non-standard or designer cigarettes have been hit hard. There is a tax increase of ₹ 8.50 per stick. Due to this, premium smoking has become much more expensive than before. According to market estimates, some cigarette variants which were earlier sold at Rs 15 to Rs 18 per stick may be priced between Rs 70 to Rs 72 after the full implementation of the new tax. The intention of the government behind this increase is quite clear. By making cigarettes and tobacco products expensive, the government wants to reduce their use, especially among youth and first-time users.
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