Tobacco products in India, including cigarettes, chewing tobacco and pan masala, are about to become significantly more expensive after the Lok Sabha approved the Central Excise (Amendment) Bill, 2025 during its winter session.
The legislation will allow the central government to impose higher excise duties on all tobacco products in addition to existing GST. Prices are expected to soar once the new rates take effect.
Under the proposal, excise duty will be levied based on cigarette length, ranging from 5,000 to 11,000 rupees per 1,000 cigarettes. This sharp increase is likely to push retail prices to unprecedented levels.
The bill sparked intense debate in parliament, with several lawmakers urging tougher measures to curb tobacco use. BJP MP Arun Govil shared his personal story, saying he quit smoking 50 years ago before playing the role of Lord Ram in the television series Ramayana. He explained that the opportunity inspired him to abandon all addictions.
The government argues the measure will discourage tobacco consumption while generating additional revenue for public health programs.
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