ITC Ltd. has once again raised the maximum retail prices (MRP) of several of its popular cigarette brands, including Classic Connect and Gold Flake Super Star. This latest adjustment comes as revised-price stock begins to enter the market, according to recent dealer checks.
Continued Response to Tax Reforms
These price revisions are part of a series of increases by cigarette manufacturers throughout the year. The initial catalyst was a significant overhaul of the taxation structure for tobacco products, which took effect on February 1, 2026. From that date, cigarettes and other tobacco products became subject to a 40% GST rate, alongside a new additional excise-duty framework.
Cigarette companies, including ITC, have been gradually adjusting prices to offset the heightened tax burden. This latest move is not an isolated incident but rather a continuation of their strategy to manage the impact of the new tax regime.
Specific Price Increases Detailed
Consumers will notice the following changes:
- The Classic Connect 20-cigarette pack has increased by ₹38, moving from ₹390 to ₹428. This represents a 9.74% rise.
- The Gold Flake Super Star 10-cigarette pack has gone up by ₹10, from ₹79 to ₹89, an increase of 12.66%.
Earlier in the year, the Classic Connect pack had already seen its price rise from ₹300 to ₹360, and then to ₹390. Similarly, the Gold Flake Super Star pack increased from ₹59 to ₹70, and then to ₹79 before this latest hike.
Potential Impact on Sales Volumes
The repeated increases in ITC cigarette prices are a critical factor for the company and the broader industry. While higher retail prices help to mitigate the effects of increased taxation, they also carry the risk of impacting consumer demand and overall sales volumes.
Brokerage firm Nomura had previously noted that ITC's pricing actions were designed to absorb the tax changes but cautioned that elevated prices could exert pressure on cigarette sales volumes. For consumers, these revisions mean yet another increase in the cost of two widely consumed ITC cigarette brands, reflecting the ongoing adjustments by manufacturers to the evolving tax landscape.