- By Soumyaroop Mukherjee
- Fri, 02 Jan 2026 08:06 PM (IST)
- Source:JND
Tobacco products, including cigarettes and pan masala, are set to become costlier as the Centre has introduced a new Central Excise Duty and Cess from February 1. According to the Finance Ministry, under the new tax slab, 40 per cent GST, a new excise duty and the existing National Calamity Contingent Duty (NCCD) will increase prices, impacting both manufacturers and consumers.
According to Jagran.com, citing Finance Ministry sources, the cumulative increase in the prices of tobacco products is set to rise by around 54 per cent from current levels. The total tax burden on cigarettes is expected to be around 66 per cent.
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How Much Will You Be Paying For A Cigarette From February 1?
If cigarette manufacturers decide to fully pass on the tax increase to their products, the price of an average cigarette is expected to increase by approximately 34 per cent. This means for a Rs 10 cigarette, you will have to pay around Rs 3.4 extra, taking it to almost Rs 14.
For a Rs 20 cigarette, you will have to pay about Rs 6.8 extra, making it Rs 26.8. For a pack of 10 cigarettes costing Rs 100, you will have to pay Rs 34 extra, taking the total to Rs 134. In case of a pack of 20 cigarettes, which earlier cost Rs 380, under the revised pricing, you will be paying close to Rs 510.
What About Beedi Smokers?
However, the additional taxes will not affect beedi smokers. Bidis continue to attract a lower GST of 18 per cent and an excise duty of 10 per cent, keeping the overall tax burden unchanged.
The Finance Minister clarified this during the discussion on the Central Excise (Amendment) Bill, 2025, in both Houses, noting that while the excise duty on bidis has shifted from a specific to an ad valorem basis, there is no increase in the total tax incidence.