New Delhi: Consumers are bracing for a significant increase in cigarette prices across India as the government has implemented a new excise duty on tobacco products. The revised rates, effective immediately, are expected to push cigarette prices up by as much as ₹55 per pack, according to reports. This hike is part of a broader strategy to curb tobacco consumption and generate additional revenue for the government.

The Finance Ministry announced the changes earlier today, detailing the specific excise duty rates for various categories of tobacco products. While the exact increase varies depending on the brand and type of cigarette, the overall impact will be felt by smokers nationwide. The move is likely to be met with mixed reactions, as while it aims to discourage smoking, it also represents a financial burden for many smokers.

Details of the New Excise Duty

The new excise duty structure introduces tiered rates based on the pack size and nicotine content of the cigarettes. Smaller packs, typically containing 10 cigarettes, will see a higher percentage increase compared to larger packs. Nicotine-containing products, including roll-your-own tobacco, are also subject to increased levies. The government has stated that the primary objective is to reduce the consumption of tobacco products, which are linked to numerous health problems, including cancer, heart disease, and respiratory illnesses.

Industry analysts predict that cigarette manufacturers will likely pass on a significant portion of the increased costs to consumers. However, the extent to which they do so will depend on factors such as competition within the market and the availability of alternative brands. Some manufacturers may absorb a portion of the cost increase to maintain market share, while others may opt for a more aggressive price hike.

The government’s move aligns with global trends aimed at reducing tobacco use. Many countries have implemented similar measures, including tax increases, advertising bans, and public awareness campaigns. India’s decision to raise excise duties on tobacco products is expected to contribute to this global effort. Health experts have welcomed the move, emphasizing the importance of discouraging tobacco use to improve public health outcomes. They note that the increased cost of cigarettes could be a deterrent for some smokers, particularly young people.

The impact of the new excise duty is expected to be felt across the entire tobacco supply chain, from manufacturers and retailers to distributors and consumers. It remains to be seen how the market will respond to the changes, but the government is confident that the measures will achieve their intended goals.