Cigarette Price Increase Announced, Gold Flake, Classic Prices Up 19–41%

Cigarette Price Increase: While smoking cigarettes is extremely harmful to health, there’s still no shortage of smokers. These cigarette enthusiasts are soon in for a major shock, as cigarettes from many major brands are set to become more expensive following the government’s decision to impose additional excise duty on tobacco products like cigarettes, bidis, and pan masala from February 1, 2026. These include Gold Flake, Classic, and Classic Connect.

Their prices may jump by 19-41 percent in the coming time. Cigarette prices are likely to increase in the retail market after new shipments arrive. Reports also indicate that some shopkeepers have already begun selling existing stock at higher rates

How much more is the price to be paid?

According to a report, citing experts, cigarette prices in the premium segment are seeing a significant increase: A 10-pack of Gold Flake cigarettes now costs Rs 240, compared to Rs 170 previously. Similarly, a 20-piece Classic pack will now cost Rs 480, compared to Rs 340 previously. The Gold Flake Superstar value pack, which previously sold for Rs 59, will now sell for Rs 70.

Why cigarette prices have risen across the country?

Cigarette prices in India first increased when the GST on sin goods was raised from 28% to 40% following GST reforms. This was followed by a significant increase in excise duty, resulting in an increase of approximately 2 to 11 rupees per cigarette. This resulted in a 15-40% increase in overall pack prices. Other tobacco companies, including Godfrey Phillips India, also raised the prices of their products.

Following this new news of a cigarette price hike, tobacco stocks surged sharply. ITC’s stock price rose nearly 2% on February 18th. Shares of Godfrey Phillips India Limited also gained more than 10% during trading. The government has imposed an excise duty of 40 percent on cigarettes and other tobacco products, in addition to the GST. The Finance Ministry notified that the excise duty, ranging from Rs 2,050 to Rs 8,500 per 1,000 sticks, depending on the length of the cigarette, took effect on February 1.