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Cigarettes and tobacco products became costlier from February 1 after fresh excise duties and a health cess came into effect.
Smokers woke up to sticker shock on Saturday as cigarettes and tobacco products became more expensive following fresh tax changes that came into force on 1 February. The price hike sparked an instant reaction online, with social media flooded with memes, jokes and sarcastic posts capturing public disbelief.
The government has imposed an additional excise duty on cigarettes and tobacco products, along with a health cess on pan masala. These levies come on top of the highest 40% Goods and Services Tax (GST), making so-called “sin goods” significantly pricier.
The new cess and excise duties replace the earlier tax structure of 28% GST plus a compensation cess that had been in place since the rollout of GST on 1 July 2017.
How Much Costlier Are Cigarettes Now?
Under amendments to the Central Excise Act, cigarettes will attract an excise duty ranging from ₹2.05 to ₹8.50 per stick, depending on their length.
- Short non-filter cigarettes (up to 65mm): Around ₹2.05 per stick
- Short filter cigarettes (up to 65mm): Around ₹2.10 per stick
- Medium-length cigarettes (65–70mm): Approximately ₹3.60– ₹4 per stick
- Long cigarettes (70–75mm): Around ₹5.40 per stick
The highest duty of ₹8.50 per stick applies only to unconventional or non-standard cigarette designs, with most popular brands staying outside this bracket.
As news of the price hike spread, social media platforms were quickly packed with viral posts, humour-laced complaints and memes lamenting the rising cost of a smoke.
Here’s how the internet reacted:
Pan Masala, Chewing Tobacco Also Affected
The Health and National Security Cess Act introduces a cess on pan masala based on the manufacturing capacity of production units. After factoring in the 40% GST, the overall tax burden on pan masala will remain at 88%.
Chewing tobacco will now attract an excise duty of 82%, while jarda-scented tobacco and gutkha will be taxed at 91%.
New MRP-Based Valuation From February 1
A new MRP-based valuation mechanism has also been rolled out for tobacco products such as chewing tobacco, filter khaini, jarda-scented tobacco and gutkha. Under the new system, GST will be calculated based on the retail sale price printed on the package.
Pan masala manufacturers will be required to obtain fresh registration under the Health and National Security Cess law. They must also install functional CCTV systems covering all packing machines and preserve footage for at least 24 months.
Manufacturers will need to declare the number of machines and their production capacities to excise authorities. An abatement of excise duty can be claimed if a machine remains non-functional for at least 15 consecutive days.
For now, while policymakers push for public health, the internet is doing what it does best — turning rising cigarette prices into viral punchlines.
English (US) ·