Cigarette, Pan Masala Prices Soar with 40% GST Hike; Netizens React

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Moneycontrol•01-02-2026, 17:57
Cigarette, Pan Masala Prices Soar with 40% GST Hike; Netizens React
- •Budget 2026 imposes a 40% GST on cigarettes, tobacco products, and pan masala, effective February 1, 2026.
- •Additional excise duties and a Health and National Security Cess further increase costs for consumers.
- •A cigarette pack previously costing Rs 18 could now range from Rs 70 to Rs 72.
- •Social media exploded with memes and jokes, with many calling it the "ideal time to quit smoking."
- •The new multi-layered tax structure includes specific rates based on cigarette length and type, and 82-91% excise duties on chewing tobacco and gutkha.
Why It Matters: Cigarette and pan masala prices have significantly increased due to a 40% GST hike and new duties.
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