ITC has raised the price of its Gold Flake Premium cigarettes again, taking the price of a 10-stick pack from ₹125 to ₹135 in September 2026.
Earlier in June, the same pack increased from ₹115 to ₹125.
This means Gold Flake Premium is now 17.4% more expensive than it was at the beginning of 2026.
WHY ARE CIGARETTE PRICES RISING?
From 1 February 2026, cigarettes moved to a 40% GST rate, along with an additional excise duty based on cigarette length and type.
The higher tax burden has led cigarette companies to increase prices.
ITC has responded with multiple price hikes across its cigarette portfolio.
ITC HAS RAISED PRICES ACROSS BRANDS
Gold Flake Premium: ₹115 → ₹125 → ₹135
Classic Connect: ₹390 → ₹428
Gold Flake Super Star: ₹79 → ₹89
These price increases are aimed at managing the impact of higher taxes.
BUT THERE IS A CATCH
Higher prices can increase revenue per pack and help recover part of the additional tax burden.
However, expensive cigarettes could also affect consumer demand.
Some consumers may reduce consumption, shift to cheaper products or look for alternative sources.
That makes cigarette volumes an important number to watch.
WHAT DOES THIS MEAN FOR ITC?
For investors, the story is bigger than just a ₹20 price increase.
The key factors are:
Higher prices
Cigarette volumes
Realisation per cigarette
Operating margins
Profitability
If ITC can pass on higher taxes through price increases while maintaining volumes and margins, the impact on the cigarette business will depend on how consumers respond to these higher prices.
THE BIGGER INVESTMENT STORY
The chain is simple:
Higher taxes → Higher prices → Consumer demand → Volumes → Margins → Profits
So, the important question is not just whether ITC cigarettes are getting expensive.
It is whether ITC can manage the higher tax burden while maintaining cigarette volumes and profitability.
Source: ITC, Reuters, NDTV Profit, Mint, Business Standard
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
