Cigarette Price Likely to Be Hiked to INR 72 Under New Excise Bill; Potential Price Rise Leaves Internet Divided

Mumbai, December 28: Reports circulating ahead of the budget discussions suggest a significant increase in the price of cigarettes in India, potentially driving the cost of a single stick to INR 72 from the current price of INR 18. This proposed hike, if implemented, represents a substantial jump from current prices and is anticipated to profoundly impact smokers, public health initiatives, and the market for tobacco alternatives.

Cigarette smoking is likely to become costlier as the Central government proposed new bill seeks to raise excise duty to curb cigarette sales and tobacco consumption. Officials privy to the development said that the price of a cigarette could jump to as much as INR 72. The news left the internet divided, with a few people welcoming the decision. E-Cigarettes Inside Parliament: Anurag Thakur Urges Speaker to Act Against TMC MP Over Using Electronic Cigarette in Lok Sabha Chamber.

The Proposed Price Adjustment

The figure of INR 72 per cigarette has emerged from various industry discussions and speculative reports, often linked to potential revisions in excise duties or Goods and Services Tax (GST) rates on tobacco products. Currently, the price of a single cigarette in India typically ranges from INR 10 to INR 20, depending on the brand and type. A jump to INR 72 would constitute an increase of over 250-600 per cent. Such a drastic price increase is generally considered a strong deterrent aimed at curbing tobacco consumption.

As a Smoker Myself I Like This Decision, Says Reddit User

As a smoker myself I like this decision

byu/sugii0 inTwentiesIndia

Social Media Abuzz With Mixed Reactions

The prospect of an INR 72 cigarette has elicited varied reactions from the smoking community. Many current smokers have expressed that such a prohibitive cost might finally provide the impetus needed to quit, citing the financial strain as a powerful motivator. A Reddit user shared a screenshot about the potential price hike and appreciated the decision reportedly taken by the government. "As a smoker myself, I like this decision. I hope this will decrease the number of smokers in India, especially the students and youngsters," the user added.

However, besides calls for quitting smoking, discussions on social media and among some individuals have also pointed towards a potential shift to electronic cigarettes or vaping as an alternative. It is critical to note that the manufacture, sale, transport, distribution, storage, and advertisement of electronic cigarettes and similar devices are banned in India under the Prohibition of Electronic Cigarettes Act, 2019.

Earlier this month, the government passed the Central Excise Amendment Bill 2025, passed, thereby clearing the way for a higher tobacco tax. The bill aims to revise excise duties and cess on tobacco products, including cigarettes, cigars, hookah tobacco, chewing tobacco, zarda, and scented tobacco. Once it is enacted into law, the bill will allow the government to increase the rate of central excise duty on tobacco and related products after the GST compensation cess ends. Parliament Winter Session 2025: Bill to Impose Extra Levy on Tobacco, Pan Masala for Replacing GST Cess to Be Tabled in Lok Sabha.

At present, cigarettes attract an excise duty ranging from INR 200 to INR 735 per 1,000 sticks, depending on length and type under the current Central Excise Act of 1944. Under the new amendment, a steep increase, with duties rising from INR 2,700 to INR 11,000 per 1,000 cigarettes, is proposed.

(The above story first appeared on LatestLY on Dec 28, 2025 04:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).