Cigarette prices are set to rise again as ITC Ltd has increased the maximum retail prices of select cigarette brands, including Classic Connect and Gold Flake Super Star, according to dealer checks. Stocks carrying the revised prices have already started entering the market.
The price of a 20-cigarette pack of Classic Connect has been increased to Rs 428 from Rs 390, marking a rise of Rs 38, or around 9.74 per cent.
Meanwhile, the price of a 10-cigarette pack of Gold Flake Super Star has been raised to Rs 89 from Rs 79. This represents an increase of Rs 10, or around 12.66 per cent.
The latest revision comes after several rounds of price increases by cigarette manufacturers this year following changes to the taxation structure for tobacco products.
From February 1, cigarettes and other tobacco products moved to a 40 per cent GST rate, along with a new additional excise-duty structure. ITC and other cigarette makers subsequently raised prices across several brands to offset the higher tax burden.
ITC had earlier increased the price of Classic Connect from Rs 300 to Rs 360 and subsequently to Rs 390 in February. Gold Flake Super Star was also raised from Rs 59 to Rs 70 before being increased again to Rs 79 in May.
The repeated price increases are aimed at absorbing the impact of the higher tax burden, although analysts have cautioned that higher cigarette prices could put pressure on sales volumes.
The latest price hike means consumers will pay more once the old-price inventory is exhausted and the revised-price packs become more widely available in the market.
