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Cigarette makers have again jacked up the prices for smoking in India with fresh hikes in May 2026. The packs are now being sold at up to ₹85 or more for a pack of 10 sticks, after a successive hike, which has been driven by an escalation in the excise rates.
It is the second large price change so far this year. The government had changed the tobacco taxing system in February 2026 by doing away with GST compensation cess with a new specific excise duty, which immediately saw an increase in the excise duty to ₹22-25 per pack for regular cigarettes and more for premium variants of the same.
Now the likes of ITC and Godfrey Phillips are on to the next level of hike—up to 17%. For example, Goldflake Premium packages have gradually breached the ₹135 price band in some markets, with some value and mid-range premium brands valuing to above the aforementioned figure. More increases could fuel designs to drive up illegal trading and bogus sales, warn distributors.
Smokers are complaining there is an increased burden on the daily costs, while health advocates are welcoming this move as a positive effort towards discouraging smoking. Additional revisions are possible if input costs keep rising.




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