Excise Bill
Cigarettes may cost four times more as parliament clears major excise duty overhaul
New Delhi/IBNS: Cigarette prices in India are poised for a dramatic surge after Parliament passed the Central Excise (Amendment) Bill, 2025, paving the way for one of the steepest tax hikes ever imposed on tobacco products.
The legislation, introduced by Minister of State for Finance Pankaj Chaudhary, seeks to comprehensively revise excise duties and cess across a wide range of tobacco products, including cigarettes, cigars, hookah tobacco, chewing tobacco, zarda and scented tobacco.
The Rajya Sabha cleared the bill and returned it to the Lok Sabha, completing the parliamentary process.
At the heart of the amendment is a sharp escalation in cigarette excise duties.
Under the existing Central Excise Act, 1944, cigarettes attract duties ranging between Rs 200 and Rs 735 per 1,000 sticks, depending on their length and category.
The new law proposes to raise this sharply to a range of Rs 2,700 to Rs 11,000 per 1,000 cigarettes, a move that is expected to translate directly into higher retail prices.
The duty increases are not limited to cigarettes alone.
Chewing tobacco will see its excise duty quadruple, jumping from 25 percent to 100 percent.
Hookah tobacco duties will rise from 25 percent to 40 percent, while smoking mixtures used in pipes and cigarettes are set for an even steeper hike—from 60 percent to as high as 325 percent.
Officials believe these changes will significantly alter pricing across the tobacco market.
According to government estimates, the cumulative impact of higher duties could mean that a low-cost cigarette selling at Rs 18 today may soon be priced at around Rs 72.
Premium cigarette brands are also expected to see substantial increases, reflecting the higher duty slabs linked to cigarette length and type.
Social media reacts
The announcement has triggered a flurry of reactions on social media, with users responding through humour, sarcasm and personal reflections.
One user, referencing Delhi’s chronic air pollution, quipped in Hindi, “Mujhe kya, main toh Delhi ki hawa mein jee leta hoon, FREE FREE FREE,” suggesting that polluted air already poses risks comparable to smoking.
Others welcomed the move. A Reddit user who identified himself as a smoker shared a screenshot of the news and praised the decision.
“As a smoker myself, I like this decision,” he wrote, adding that the price hike could discourage students and young people from taking up smoking.
“I might be able to quit as well,” the user said, echoing a sentiment seen across several online discussions.
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