India
oi-Madhuri Adnal
Cigarette prices are going up again, with ITC Ltd raising the prices of select cigarette brands. The latest revision covers brands including Classic Connect and Gold Flake Super Star.
According to dealer checks, the price of a 10 cigarette pack of Gold Flake Super Star has increased by Rs 10. The pack, which was earlier priced at Rs 79, will now cost Rs 89, marking a 12.66% increase.
ITC Ltd. has again increased cigarette prices for brands like Gold Flake Super Star, raising the 10-pack cost by Rs 10 to Rs 89, following earlier tax adjustments and multiple previous revisions since February.
The latest revision comes after changes to the tobacco taxation structure earlier this year, which led cigarette manufacturers to revise prices across several brands.
Earlier cigarette price hikes
Cigarettes and other tobacco products moved to a 40% GST rate from February 1, along with a new additional excise duty structure. Since then, manufacturers have made several rounds of price revisions across different brands.
ITC had already increased the price of Classic Connect twice in February, according to earlier reports. Its price was raised from Rs 300 to Rs 360 and later to Rs 390.
Gold Flake Super Star also saw a price increase during the same period, moving from Rs 59 to Rs 70.
Another round of revisions followed in May, particularly for lower priced and smaller pack options. NDTV Profit reported that the price of Gold Flake Super Star was increased from Rs 70 to Rs 79.
The latest increase takes the price of the 10 cigarette Gold Flake Super Star pack to Rs 89.
Higher prices reach distribution chain
The revised price packs have already started entering the distribution chain, according to dealer checks. This means smokers could begin seeing the new prices at retail outlets as older stocks are gradually replaced.
The repeated price revisions come as cigarette makers adjust their pricing following the higher tax burden. While higher prices can help companies absorb part of the additional tax cost, they could also affect consumer demand, particularly among price sensitive buyers.
For consumers, the latest increase means another rise in the cost of cigarettes within the same year.
