New Delhi: ITC Ltd has raised the prices of select cigarette brands again, with Classic Connect and Gold Flake Super Star among the products seeing higher maximum retail prices. According to dealer checks cited by NDTV Profit, stocks carrying the revised prices have already started entering the market.
The latest price revision comes months after a major change in the taxation structure for cigarettes and other tobacco products. From February 1, 2026, cigarettes moved to a 40% Goods and Services Tax (GST) rate along with an additional excise-duty structure. Cigarette manufacturers have since raised prices across several categories to offset the higher tax burden.
Classic Connect price rises to ₹428
The latest increase affects ITC’s Classic Connect cigarettes, with the price of a 20-cigarette pack increasing to ₹428 from ₹390 earlier.
This represents an increase of about 9.74%. The revised packs are now beginning to reach the market, according to dealer checks reported by NDTV Profit.
Classic Connect had already undergone multiple price revisions during 2026. The cigarette’s price was earlier reported to have moved from ₹300 to ₹360 and subsequently to ₹390 following the changes in taxation.
The latest increase therefore represents another adjustment to the price of the same product within a relatively short period.
Gold Flake Super Star gets another hike
ITC has also increased the price of its Gold Flake Super Star 10-cigarette pack.
The pack will now cost ₹89, compared with ₹79 earlier, marking an increase of around 12.66%, according to dealer checks.
The product had already seen a price increase earlier this year. In May, NDTV Profit reported that ITC had raised the price of Gold Flake Super Star from ₹70 to ₹79.
The latest revision takes the price to ₹89, making it the second reported increase for the product in 2026.
Why cigarette prices are rising
The latest price increases are linked to changes in the taxation of tobacco products.
From February 1, cigarettes and other tobacco products were brought under a 40% GST rate, alongside a new additional excise-duty structure. The tax changes increased the burden on cigarette manufacturers, prompting companies to revise retail prices across different categories.
ITC has made several rounds of price adjustments since the new tax regime came into effect.
Earlier reports indicated that premium cigarette categories experienced particularly sharp increases. In February, ITC was reported to have raised prices of several brands, including Classic and Gold Flake products, with some categories recording increases of more than 40%.
The company has subsequently adjusted prices of lower-priced and pocket-pack products as well.
Multiple price revisions this year
The latest changes are not the first cigarette price increases announced by ITC in 2026.
In February, Classic Connect was reported to have increased from ₹300 to ₹360 before moving to ₹390. Gold Flake Super Star, meanwhile, rose from ₹59 to ₹70 during the same period.
A further increase in Gold Flake Super Star to ₹79 was reported in May. The latest revision brings the price to ₹89.
The repeated increases show how cigarette companies have been adjusting their pricing following the changes in excise duty and GST.
Higher prices could affect cigarette volumes
The industry’s pricing strategy comes amid concerns about the effect of higher retail prices on cigarette consumption volumes.
Earlier dealer checks cited by NDTV Profit indicated that cigarette volumes had weakened following the February tax increase, with premium king-size products experiencing a particularly sharp decline. Some consumers were reported to have shifted towards lower-priced alternatives as per-stick prices increased.
ITC and other cigarette manufacturers therefore face a balance between passing higher taxes on to consumers and protecting sales volumes.
Analysts have also been watching cigarette margins closely. Earlier reports suggested that manufacturers could face pressure on volumes even as price increases help offset some of the higher tax burden.
ITC continues to adjust its cigarette portfolio
ITC’s cigarette business remains an important part of the company’s overall operations, alongside its FMCG, hotels, paperboards, agri-business and information technology businesses.
The company has responded to the changed tax environment through several pricing strategies rather than relying on a single across-the-board increase.
In some markets, ITC has also introduced shorter cigarette variants at lower price points. Dealers told NDTV Profit in June that the company had launched a 75 mm version of Classic priced at ₹17 per stick in selected price-sensitive markets. The shorter format was intended to keep pack prices more accessible while accommodating the higher tax burden.
This indicates that manufacturers are using both price increases and product-format changes as they respond to the new tax structure.
What smokers will pay now
Under the latest reported price changes, the key revised prices are:
- Classic Connect, 20 cigarettes: ₹428, up from ₹390
- Gold Flake Super Star, 10 cigarettes: ₹89, up from ₹79
The latest prices represent increases of approximately 9.74% and 12.66%, respectively.
The availability of the new-price packs may vary by location as older inventory is gradually replaced by stock carrying the revised maximum retail prices.
Further price changes remain possible
The cigarette industry has already gone through several rounds of price revisions since the beginning of 2026. The latest ITC increases add to those changes and come as manufacturers continue to adjust to the higher tax incidence.
For consumers, the immediate impact is higher retail prices for several widely sold cigarette brands. For ITC and its investors, the key issue will be whether higher prices sufficiently offset the additional tax burden without causing a significant decline in volumes.
The latest revision also highlights how India’s new tobacco taxation regime is continuing to reshape cigarette pricing, with manufacturers repeatedly adjusting their products and prices in response.