Classic Connect, Gold Flake Super Star now more expensive: ITC hikes cigarette prices again

Higher tobacco taxes are pushing up cigarette prices, with the ITC increasing rates on select brands. The latest changes are for Classic Connect and Gold Flake Super Star, according to NDTV Profit.

Checks with dealers indicate that packages with revised prices have already started entering the market. These increases follow several rounds of price changes by ITC this year.

A pack of 20 Classic Connect cigarettes now costs ₹428, against ₹390 earlier. This represents an increase of ₹38 or 9.74% for each package, NDTV Profit said.

Gold Flake Super Star saw a larger percentage increase. His pack of 10 cigarettes now costs ₹89, compared with ₹79 earlier. Buyer pays ₹10 more, representing an increase of 12.66%.

The tax changes came into effect on February 1. Cigarettes and other tobacco products moved to 40% GST rate. A new structure of additional excise duties also entered into force.

Apart from cigarettes, other products that fall under the 40% GST include Pan Masala, carbonated water with added sugar, carbonated drinks, medium and large cards, motorcycles (above 350 CC), aircraft for personal use and pleasure yachts.

For cigarettes, this additional duty ranges from ₹2,050 to ₹8,500 for 1,000 sticks. The usable amount depends on the length of the cigarette and whether the product has a filter. These charges are higher than GST, increasing the overall tax burden.

Manufacturers passed on higher tax costs to buyers, with longer and filtered cigarettes particularly affected.

Earlier price increases had already made both of these products more expensive. Classic Connect was born in February ₹300 to ₹360, then to ₹390. Super Star gold flake raised from ₹59 to ₹70 during this period.

Reaction on social networks

Social media users posted mixed reactions to the latest price hike. Some have joked that cigarettes are more expensive, while others believe it’s the right call.

“Inflation does not allow us to live in peace, nor does it allow us to smoke in peace,” wrote one of them.

“Now even the error in grief has become more expensive,” joked another user.

One user commented: “I totally support this price increase. Raise prices every month. Make it so expensive it’s hard for people to smoke.”

“It won’t change anything. Smokers will smoke anyway,” chimed in another.

“Government asks companies for money and ITC passes it on to customers. That’s how it works. n=the biggest fools are the customers because there is no value for money,” another user wrote.