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Cigarettes have suddenly become more expensive after Union Budget 2026 but why? From higher excise duty to revised MRPs and fresh stock rollout, here’s what’s driving the price jump and how much more smokers may now have to pay.
moking has become more expensive across India following the Union Budget 2026-27
New Delhi: Smoking has become more expensive across India following the Union Budget 2026-27, with cigarette prices rising sharply after the government increased excise duty on tobacco products. The revised rates came into effect from Sunday, triggering immediate price revisions across premium, mid-range, and slim cigarette categories.
Retailers and distributors confirmed that cigarette packs are now costlier by Rs 22 to Rs 25 at the lower end, while premium brands have seen steeper increases. Popular 76 mm premium cigarettes have gone up by Rs 50 to Rs 55 per pack of 10 sticks.
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Mid-sized cigarettes such as Wills Navy Cut, earlier priced at around Rs 95, are now expected to retail at approximately Rs 120 per pack. Longer 84 mm cigarettes, including Gold Flake Lights and Wills Classic, have witnessed some of the sharpest hikes, with prices moving from Rs 170 to nearly Rs 220-225 per pack.
Slim cigarette variants have not been spared either. Certain packs of 20 slim cigarettes are now expected to retail at close to Rs 350, making them among the most expensive options in the market.
The price increase follows the Union Budget’s signal of tighter taxation on tobacco products, with higher excise duties aimed at discouraging consumption while boosting revenue. Industry sources said distributors have already started billing existing stock at higher rates, factoring in revised tax structures and GST adjustments.
Although wholesale markets remained shut on Sunday, traders expect fresh supplies with updated maximum retail prices (MRPs) to be fully available from Monday onwards. Retailers across major cities have begun reflecting the revised prices, with nationwide implementation expected in the coming days.
Market participants said the transition to new MRPs is happening gradually as older stock clears and new consignments arrive. However, consumers are already feeling the impact, especially frequent smokers who rely on mid-range and premium brands.
Higher cigarette prices have historically been used as a policy tool to reduce tobacco consumption. Health experts have long argued that increased taxation can discourage smoking, particularly among young and first-time users.
With the latest budget-driven hike, cigarettes have officially become a costlier habit. Whether this translates into reduced consumption remains to be seen, but the financial deterrent is now firmly in place.
