Cigarette Prices Surge as Government Increases Taxes

New Delhi: In a significant move aimed at discouraging tobacco consumption, the Indian government has delivered a major blow to cigarette smokers by increasing taxes on cigarettes. The revised taxation structure includes a hike in both excise duty and GST, as per the latest notification issued by the Finance Ministry. The government’s objective behind this decision is to reduce the prevalence of smoking and promote a healthier society.

Price Hike Across Different Cigarette Categories

The recent tax increase has led to a substantial rise in cigarette prices across various categories:

  • Small Cigarettes (up to 65 mm): The price of small-sized cigarettes has increased by 25%. Previously priced at Rs 2000 per 1000 cigarettes, the new rate now stands at Rs 2500.
  • Medium Cigarettes (65-75 mm): The price for this category has jumped from Rs 3300 to Rs 4000 per 1000 cigarettes, marking a 21.2% increase.
  • Long Cigarettes (75-85 mm): Consumers of long cigarettes will now have to pay Rs 5200 per 1000 cigarettes, up from Rs 4500, reflecting a 15.5% increase.
  • Extra-Long Cigarettes (above 85 mm): The tax on these cigarettes has risen from Rs 5900 to Rs 6800 per 1000 cigarettes, an increase of 15.2%.

Government’s Vision: A Tobacco-Free Nation

The government’s primary goal behind this tax hike is to discourage tobacco consumption and promote a drug-free society. By making cigarettes more expensive, authorities believe that smoking rates will decline, ultimately leading to improved public health. Higher prices may deter individuals, particularly young and low-income smokers, from purchasing cigarettes, thereby reducing addiction rates.

Health Benefits and Global Recommendations

Medical experts widely acknowledge smoking as a major contributor to serious health conditions, including cancer, heart disease, and respiratory illnesses. The World Health Organization (WHO) has long advocated for higher taxes on tobacco products as an effective strategy to reduce consumption and enhance public health.

By implementing this tax increase, India aligns itself with global health policies that prioritize reducing smoking-related diseases and fostering a healthier population.

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