Cigarette Prices Hike: Major setback for cigarette lovers. Inflation has dealt another major blow to cigarette smokers. ITC, India’s largest FMCG and tobacco company, has raised prices for Gold Flake, one of its most popular and best-selling cigarette brands. Regular customers will now need to spend more, as the company’s price increase for Gold Flake RSFT (69 mm) has taken effect immediately.
Cigarette Prices Hiked
ITC has raised the price of a pack of Gold Flake RSFT (69 mm) cigarettes by Rs 10. Customers must now pay Rs 135 per pack, up from the previous retail price of Rs 125 at markets and paan shops. The increase amounts to approximately 8 percent.
Why did cigarette prices rise?
The sharp rise in cigarette prices is mainly due to significant changes in government taxes and duties. The government introduced a 40% GST and substantial excise duties on cigarettes and other tobacco products from February 1, 2026. Companies were expected to pass these higher costs on to consumers. The tax increase has raised ITC’s manufacturing expenses, prompting the company to revise prices for its fastest-selling cigarettes.
Impact on Consumers’ Pockets and the Market
Gold Flake is among India’s best-selling cigarette brands. Although an extra Rs 10 per pack may seem modest, daily smokers could see their monthly spending rise by Rs 300 to Rs 600. For ITC, passing the tax burden on to customers can help preserve profit margins. Cigarettes contribute a significant share of the company’s total revenue, making the pricing decision important to its business. Market experts expect other tobacco companies may also consider increasing prices for their cigarette brands in the coming days. New stock bearing the revised printed price of Rs 135 has begun reaching retail outlets.