India is considering a major tobacco tax increase to align with World Health Organization recommendations, which could raise cigarette prices significantly. A single cigarette may cost around Rs 72, making a pack over Rs 1,400.
For millions of smokers across India, lighting up could soon become a much costlier habit. If the proposed tobacco tax changes are fully passed on to consumers, the price of a single cigarette could jump to around Rs 72, from the current Rs 15–Rs 20 per stick. That means a pack of 20 may cost over Rs 1,400, a staggering figure in a country where cigarettes have traditionally been among the cheapest in the world.
Why Are Cigarette Prices Rising So Sharply?
The government has approved a major overhaul of tobacco taxation to align India more closely with the World Health Organization's recommendation that taxes should make up at least 75% of the retail price of cigarettes.
At present, taxes account for about 53% of the final cost.
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The logic is straightforward: Make smoking expensive, reduce smoking.
How Much Do Cigarettes Cost Around the World?
Here's how India's possible future prices compare with what smokers already pay in other countries:
- United States: Rs 650–Rs 1,000 per pack, depending on the state. New York is among the costliest.
- United Kingdom & Ireland: Around Rs 1,200–Rs 1,400 per pack.
- Australia: One of the most expensive markets globally — packs often exceed Rs 2,000.
- China & Indonesia: Relatively cheap, usually between Rs 200 and Rs 600 per pack.
If India touches Rs 72 per stick, its cigarette prices will start resembling Europe's high-tax nations.
World's Most Expensive Places to Buy Cigarettes
According to Numbeo's latest rankings, Australia tops the list as the costliest country to buy cigarettes. A pack there costs an eye-watering $33.47, nearly Rs 2,800 at current exchange rates.
It is followed by New Zealand and the UK, where aggressive taxation has turned smoking into a luxury rather than a casual habit.
Top 10 most expensive countries for cigarettes:
- Australia – $33.47
- New Zealand – $23.74
- United Kingdom – $22.95
- Ireland – $20.59
- Norway – $15.98
- Netherlands – $14.71
- Canada – $14.61
- France – $14.12
- Belgium – $13.53
- Hong Kong (China) – $13.12
At these prices, a single cigarette in Australia can cost more than an entire pack in several Asian nations.
Where Cigarettes Are Still Relatively Cheap
At the other end of the scale are countries where cigarettes remain far more affordable, often due to lower taxes.
Among the relatively cheaper markets:
- United States – $10.40
- Sri Lanka – $10.32
- Germany – $10.24
- Denmark – $9.93
- Palestine – $8.80
- Pakistan - $2.14
Sri Lanka's prices, for instance, are dramatically lower than what Indian smokers may soon face.
What This Means for Indian Smokers
A smoker who consumes one pack a day currently spends about Rs 6,000–Rs 7,000 a month. With the new pricing, that bill could surge beyond Rs 40,000.
For many households, that's not just a pinch, it's a financial earthquake.
Will Higher Prices Really Stop People from Smoking?
Public health experts believe price hikes are the most effective weapon against tobacco use, especially among:
- Teenagers and first-time smokers
- Low-income users
- Casual or social smokers
