Cigarette Prices to Quadruple Under New Excise Bill; Rs 18 Pack May Hit Rs 72

• Parliament approved the Central Excise (Amendment) Bill, 2025, leading to a sharp increase in duties on tobacco products.
• Excise duty on cigarettes will jump from Rs 200–735 to Rs 2,700–11,000 per 1,000 sticks.
• Chewing tobacco duty rises to 100%, hookah tobacco to 40%, and smoking mixtures fivefold to 300%.
• A cigarette currently priced at Rs 18 could cost up to Rs 72 after the new duties are passed on.
• The move aims to use taxation as a public health tool and has received mixed public reactions.

Why It Matters: New excise bill will drastically increase tobacco prices, making an Rs 18 cigarette cost Rs 72.