Will Cigarettes Cost More After Budget 2024? Know Here

New Delhi: In a relief for tobacco consumers, cigarette prices will stay the same as the government did not announce any hike in existing tax rates related to tobacco in the 2024 Union Budget laid in the Parliament on Tuesday. 

While the Goods and Services Tax (GST) Council primarily oversees the taxation of tobacco products, the central government also imposes a National Calamity Contingent Duty (NCCD) on cigarettes that is subject to adjustments during the Union Budget. 

Cigarette Prices To Remain Unchanged

Finance Minister Nirmala Sitharaman chose not to increase these taxes in her recent Budget address, thus maintaining the rates from the 16% NCCD increase introduced last year.

While the shares of diversified conglomerate ITC jumped as much as 5% after the government chose to continue with the existing tax rates on cigarettes and other tobacco products. The stock was last trading 4.67% higher at Rs 488.35 on the NSE.

Nirmala Sitharaman Creates History

Earlier in the day, Finance Minister Nirmala Sitharaman presented her record seventh consecutive Union Budget 2024-25. She made history as the first finance minister to present seven consecutive budget speeches, surpassing former Prime Minister Morarji Desai's record of six consecutive budgets as finance minister between 1959 and 1964.

FM Sitharaman, in her seventh consecutive Union Budget for 2024-25, outlined key priorities aimed at fostering economic growth and creating ample opportunities. The priorities include Productivity and Resilience in Agriculture, Employment and Skilling and services.

In her budget speech, Sitharaman introduced an increased standard deduction and revised tax rates for salaried individuals under the new tax regime. Sitharaman announced a significant set of income-tax reforms for the fiscal year 2024-25, aimed at simplifying tax laws, promoting compliance, and fostering economic growth.