Cigarette Tax Hike: If you smoke cigarettes, get ready to dig deeper into your pockets. With the start of February, cigarette smokers are in for a big shock. The government has decided to increase taxes on cigarettes, making every puff more expensive than before. Those who smoke regularly will see a significant increase in their monthly expenses.
Inflation is already putting a strain on the common man’s budget, and now the increased tax on cigarettes will only add to this burden. According to reports, this decision may also lead to a decline in cigarette sales.
The entire economics of cigarettes will change from February
Cigarette Tax Hike: The cess that was previously levied has been removed and replaced with an additional excise duty. This will directly impact the price of cigarettes. The shock will be even greater for those who smoke premium or longer cigarettes. Cigarettes longer than 65 mm will now attract an additional duty of approximately ₹3.6 to ₹8.5 per stick.
This means each pack will become significantly more expensive. Those who smoke cheaper or shorter cigarettes will also not be spared. They will also face a tax increase of more than ₹2 per stick. On top of this, the 40 percent GST will continue to apply, further increasing the overall price.
Direct impact on cigarette smokers
This increased tax will directly impact consumers’ wallets. Cigarettes that were easily affordable before will now require careful consideration before purchase. This is why a CRISIL report estimates that cigarette sales may decline by approximately 6 to 8 percent in the coming months.
This will not be an easy time for companies either. Companies that sell cheaper cigarettes, in particular, may find it difficult to retain their customers. On the other hand, those who smoke premium cigarettes will have to pay more for every puff.
The Government’s Objective and the Common Man’s Dilemma
The government believes that increasing taxes will reduce tobacco consumption and improve public health. However, the reality is that for those addicted to cigarettes, this decision is a direct blow to their wallets.
Many are seeing this as the perfect opportunity to quit, while others are reluctantly accepting it as an unavoidable burden. But one thing is certain: after February, cigarettes will no longer be as affordable as before.
Is Now the Right Time to Quit?
Rising prices may force many to quit smoking. From a health perspective, this change could prove beneficial. Expensive cigarettes might make people think twice about whether every puff is truly necessary.
Disclaimer: This article is based on media reports and available information. Taxes, prices, and regulations on cigarettes may change from time to time according to government decisions. For accurate information, please refer to the relevant government notifications or official sources.
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