Cigarette prices jump up to ₹55 per pack after excise duty hike
Cigarette prices jump up to ₹55 per pack after excise duty hike
New excise duty hike pushes cigarette prices higher across India, with premium packs hitting ₹55 per 10 sticks as stockists prepare revised MRPs and retailers brace for changes.
Cigarette prices have risen significantly following the implementation of an additional excise duty from Sunday, with increases ranging from ₹22 to ₹25 per pack of 10 sticks. Premium cigarettes, 76 mm in length, are now expected to cost between ₹50 and ₹55 per pack of 10 sticks, depending on the brand. Manufacturers have not yet issued revised MRPs, but distributors say billing for old stock is already underway at the new tax rate, with a 40% GST on tobacco products in effect. Fresh stock with the new MRPs is anticipated to enter the market from Monday as supply chains adjust to the updated tax structure.
Distributors and stockists expect new MRPs to be issued by the end of the month, while some companies have paused releasing stock until billing under the new regime is complete. The All India Consumer Products Distributors Federation notes there are around 8,000 to 9,000 stockists of cigarette and tobacco products across the country, highlighting the vast reach of the reform.
Industry representatives warn that the price surge could fuel smuggling and counterfeit activity, potentially undermining the traditional brick-and-mortar retail system that still serves a large number of small shopkeepers. The federation, representing tens of thousands of distributors and countless general stores, stresses the need for careful implementation to protect legitimate retailers and curb illicit networks.
As prices adjust, retailers and consumers alike will be watching for the real-world impact on consumption patterns and the overall retail landscape in the coming weeks.
