Cigarettes Get Costlier: ITC Hikes Gold Flake, Classic Connect Brand Prices — Here's What Smokers Will Pay

ITC Ltd has raised prices of select cigarette brands again, with Classic Connect and Gold Flake Super Star seeing higher maximum retail prices, according to dealer checks. New-price stock has already started entering the market.

The Classic Connect 20-cigarette pack is now priced at Rs 428, compared with Rs 390 earlier. That works out to a 9.74% increase.

Meanwhile, the Gold Flake Super Star 10-cigarette pack has been raised to Rs 89 from Rs 79, a 12.66% increase, according to dealer checks.

Tax-Led Changes For The Cigarette Industry This Year

From February 1, cigarette and other tobacco products moved to a 40% GST rate, alongside a new additional excise-duty structure. ITC and other cigarette makers subsequently raised prices across several brands to offset the higher tax burden. Nomura had earlier noted that ITC's price increases were aimed at cushioning the impact of the tax change, while warning that higher prices could put pressure on volumes.

The latest increase is notable because it follows earlier price revisions rather than representing the sector's first response to the new tax regime.

In February, industry reports had indicated that ITC raised the price of Classic Connect from Rs 300 to Rs 360, and then to Rs 390, while Gold Flake Super Star rose from Rs 59 to Rs 70.

ITC subsequently raised prices again on select lower-priced and pocket-pack offerings. In May, NDTV Profit reported that the company had increased the Gold Flake Super Star price to Rs 79 from Rs 70. That was part of a second round of pricing actions as cigarette makers sought to absorb the higher tax incidence.

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