Cigarette prices set to jump in early 2026
In early 2026, cigarettes in India are getting a lot more expensive thanks to a new excise duty.
The tax adds a 40% GST plus an extra charge of ₹2,050-₹8,500 per 1,000 sticks (depending on size and filter), so expect each short cigarette to cost about ₹2.10 more and long ones around ₹5.40 extra.
Packs will cross the ₹300 mark
A typical pack that costs around ₹200 today is expected to shoot up to between ₹300 and ₹350.
This means Indian cigarettes will be way pricier than those in neighboring countries like Pakistan or Bangladesh, where similar packs cost just ₹75-₹80.
Farmers worry about shift to illegal brands
Tobacco farmers in Andhra Pradesh and Telangana are concerned that higher prices might push people toward illegal cigarettes—already making up over a quarter of the market.
They're worried this could hurt demand for legally grown tobacco and impact rural jobs and incomes.