Hyderabad: Cigarette prices in India may quadruple – from ₹18 to as high as ₹72 per stick – if the proposed Central Excise (Amendment) Bill, 2025, is approved by Parliament. As cigarette prices rise, consumers are expressing varying opinions on the potential impact.
The bill, introduced by Minister of State for Finance Pankaj Chaudhary, seeks steep hikes in excise duties on various tobacco products, including cigarettes, cigars, hookahs, and chewing tobacco. The move aims to curb tobacco consumption, with officials saying previous measures have failed to significantly reduce usage.
Under the existing structure, excise duty ranges from ₹200 to ₹735 per 1,000 cigarettes depending on type and length. The amendment proposes to raise this duty to between ₹2,700 and ₹11,000 per 1,000 cigarettes, clearly indicating cigarette prices will rise.
Excise hike could impact all tobacco users in India
The bill also proposes quadrupling excise on chewing tobacco from 25% to 100%, raising hookah tobacco tax from 25% to 40%, and increasing tax on smoking mixtures from 60% to 300%. The significant tax increases mean cigarette prices rise across the board.
If passed, the amendment would drastically alter tobacco pricing across the country. Authorities believe this is a necessary step, given the limited success of earlier restrictions. Public reaction online has been mixed. Some users expressed support, viewing the hike as motivation to quit smoking. Others criticised the move as overreach by the government, attributing it to how cigarette prices rise over time.