NEW DELHI, SEPT 17: ITC Limited has increased the maximum retail prices of select cigarette brands, making popular variants including Classic Connect and Gold Flake Super Star costlier for consumers.
Following the latest MRP revision, a 20-cigarette pack of Classic Connect will now retail at Rs 428, up from Rs 390 earlier, marking an increase of nearly 9.7 per cent.
The price of a 10-cigarette pack of Gold Flake Super Star has been raised from Rs 79 to Rs 89, a hike of around 12.7 per cent.
Stocks carrying the revised prices have already started entering the market, indicating that consumers will see the higher prices across retail outlets as old stocks are replaced.
The latest increase is part of multiple price revisions undertaken by ITC this year following changes in the taxation structure applicable to cigarettes and other tobacco products.
From February 1, cigarettes and other tobacco products came under a 40 per cent GST rate, along with a new additional excise-duty structure.
Depending on cigarette length and whether they are filtered, additional excise duty ranges from Rs 2,050 to Rs 8,500 per 1,000 sticks, over and above GST.
Longer and filtered cigarettes have faced relatively higher tax incidence under the revised structure, prompting manufacturers to revise retail prices to account for the increased tax burden.
ITC had earlier raised the price of Classic Connect from Rs 300 to Rs 360 and subsequently to Rs 390. Gold Flake Super Star, meanwhile, had increased from Rs 59 to Rs 70 earlier this year.
King-size brands, including Classic and Gold Flake Kings, have also witnessed significant price revisions, with per-stick prices in some segments reportedly moving from around Rs 20 to the Rs 25–28 range.
The latest MRP changes are expected to further increase the cost of cigarette consumption as tobacco companies continue adjusting prices following the revised tax regime.
