Smokers across the country are facing a significant financial blow as ITC, India’s leading cigarette manufacturer, has implemented a massive price hike ranging from 19% to 41%. This move follows the introduction of new excise duties and GST reforms on tobacco products that became effective on February 1, 2026. Popular brands like Gold Flake and Classic have seen unprecedented increases, with retailers noting that while prices usually rise by only a rupee or two, this is the first time such a substantial jump has occurred in a single revision.
The price of a 10-cigarette pack of Gold Flake has surged from ₹170 to ₹240, meaning a single cigarette now costs ₹24—a ₹7 increase per stick. Similarly, the 20-piece Classic variant pack has jumped from ₹340 to ₹480, reflecting an increase of ₹140 per pack. Even value brands have not been spared; the ‘Super Star Value’ 10-pack has risen from ₹59 to ₹70. These changes have left many daily smokers in a dilemma, struggling to balance their habit with the mounting pressure on their wallets.
The steep rise is primarily attributed to the government’s decision to reclassify tobacco products under “sin goods,” increasing the GST rate from 28% to 40% along with additional cess. Following the GST reforms, excise duties per stick have risen significantly, forcing other tobacco companies like Godfrey Phillips India to also revise their pricing. With the tax burden increasing the cost of a full pack by nearly 15% to 40% overall, health experts suggest this could act as a deterrent for smokers, while consumers find themselves “suffocated” by the rapidly depleting disposable income.
