Excise Duty
Budget shock for smokers: Cigarette prices set to jump by Rs 25 per pack
Mumbai/IBNS: Cigarette prices are set to rise by Rs 22–25 per pack of 10 sticks following the implementation of additional excise duty announced in the Union Budget, a report by Hindustan Times said.
Distributors said premium cigarette brands could see steeper hikes of Rs 50–55 per pack, depending on the brand.
Although manufacturers are yet to officially announce the revised Maximum Retail Prices (MRP), distributors have already begun charging retailers at the new rates, inclusive of 40% GST.
Distributors added that fresh stocks bearing the revised prices are expected to reach the market from Monday.
The additional excise duty was introduced in the Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman in Parliament on Sunday.
Industry leaders broadly welcomed the Budget, which outlined several major initiatives, including the launch of India Semiconductor Mission (ISM) 2.0.
Presenting the Budget, Sitharaman said the government’s priorities include accelerating economic growth, boosting competitiveness, and strengthening resilience against global uncertainties.
The Budget also emphasised financial sector reforms, higher capital expenditure, and regulatory improvements to support long-term economic expansion.
According to the fiscal roadmap, the debt-to-GDP ratio is projected to decline to 55.6% in 2026–27 from 56.1% in the current year, while the fiscal deficit has been pegged at 4.3% of GDP.
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