Higher tobacco taxes are pushing up cigarette prices, with ITC increasing rates for select brands. The latest changes affect Classic Connect and Gold Flake Super Star, according to NDTV Profit.
Dealer checks indicate that packs carrying the revised prices have already started entering the market. These increases follow several rounds of price changes by this year.
A pack of 20 Classic Connect cigarettes now costs ₹428, against ₹390 earlier. That represents an increase of ₹38, or 9.74%, for each pack, NDTV Profit reported.
Gold Flake Super Star has seen a bigger percentage increase. Its pack of 10 cigarettes now costs ₹89, compared with ₹79 previously. Buyers will pay ₹10 more, marking a 12.66% rise.
The tax changes took effect on 1 February. Cigarettes and other tobacco products moved to a 40% GST rate. A new additional excise duty structure also came into effect.
Except for cigarettes, other products that came under the 40% GST bracket include Pan Masala, Aerated Water containing added sugar, carbonated beverages, mid-size and large cards, motorcycles (Over 350 CC), aircraft for personal use and yachts for pleasure.
For , this additional duty ranges from ₹2,050 to ₹8,500 per 1,000 sticks. The applicable amount depends on the cigarette length and whether the product has a filter. These charges come above GST, increasing the overall tax burden.
Manufacturers have passed higher tax costs to buyers, with longer and filtered cigarettes especially affected.
Earlier price increases already made both these products more expensive. In February, Classic Connect rose from ₹300 to ₹360, then to ₹390. Gold Flake Super Star increased from ₹59 to ₹70 during that period.
Social media users posted mixed reactions about the latest price hike. Some have joked about cigarettes being more expensive while others believe it’s the right call.
“Inflation doesn’t let us live in peace, nor does it let us smoke in peace,” wrote one of them.
“Now, even making a mistake in sorrow has become expensive,” quipped another user.
One user commented, “I totally support this price hike. Increase prices every month. Make it so expensive that people find it difficult to smoke.”
“This will change nothing. Smokers will smoke anyway,” came from another.
