Delhi/Hyderabad, Sept 16 (Maxim News): Cigarette prices have risen again after ITC Ltd increased the maximum retail prices of select brands. Classic Connect and Gold Flake Super Star are among the brands affected by the latest revision.
According to dealer checks cited by NDTV Profit, stocks carrying the revised prices have already started entering the market. The Classic Connect 20-cigarette pack now costs Rs 428, compared with Rs 390 earlier. This amounts to a 9.74% increase.
The Gold Flake Super Star 10-cigarette pack has also become costlier. Its price has increased to Rs 89 from Rs 79 earlier. That represents a 12.66% rise in the maximum retail price.
Cigarette Prices Rise After Tax Changes
The latest cigarette prices come after major changes in the taxation of tobacco products. From February 1, cigarettes and other tobacco products moved to a 40% GST rate along with a new additional excise-duty structure.
ITC and other cigarette makers have since revised prices across several brands to offset the higher tax burden. Nomura had earlier noted that ITC’s price increases were aimed at cushioning the impact of the tax changes. It also warned that higher prices could put pressure on cigarette volumes.
The latest hike follows several earlier price revisions this year. In February, Classic Connect was reportedly increased from Rs 300 to Rs 360 and later to Rs 390. Gold Flake Super Star also rose from Rs 59 to Rs 70 during that period.
ITC raised Gold Flake Super Star again in May, taking its price from Rs 70 to Rs 79. The latest increase now takes the 10-cigarette pack to Rs 89.
The repeated price increases show the industry’s continuing response to the higher tax incidence. Consumers will see the revised rates as the new-price stock replaces older inventory in retail outlets.
The latest development also lifted investor attention around ITC. The company’s shares gained more than 2% during Wednesday’s trading session after reports of the cigarette price hike emerged. (Maxim News)
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