Cigarette Packs Become Costly: How Much Are You Paying For Gold Flake and Classic? Know New Price

Buying a pack of cigarettes in India just became a lot more expensive. The big tobacco company, ITC, has increased the prices of its most popular brands like Gold Flake and Classic by a huge margin.

How Much More Will You Pay?

Depending on the brand and pack size, the price has shot up by 19% to a staggering 41%. To put it in perspective:

• A pack of 10 Gold Flake cigarettes, which used to cost Rs. 170, will now set you back by Rs. 240, as per a report in NDTV.
• A 20-pack of Classic, previously priced at Rs. 340, will now cost Rs. 480.
• Even the more affordable "value" packs haven't been spared. The Gold Flake Superstar Value 10-pack has gone from Rs. 59 to Rs. 70.

Why the Sudden Hike?

This isn't a greedy move by the companies alone; it's a direct result of government action. To discourage smoking, which is harmful to health, the government has increased taxes. Effective February 1, 2026, there's been a hike in excise duty (adding roughly Rs. 2 to Rs. 11 per cigarette) and an increase in GST on such "sin goods" to 40%. ITC is simply passing this increased tax burden onto the smokers.

The Ripple Effect:

It's not just ITC. Other companies like Godfrey Phillips have also raised their prices. This means no matter what brand you smoke, you're likely to pay more. Reports suggest that while new stock will carry these higher prices, some shopkeepers have already started selling their old stock at the new rates.

The Stock Market Twist:

Here's an interesting part that might seem odd to a common man. While the common man (the smoker) is unhappy about paying more, the stock market is very happy. The day the price hike was reported, shares of ITC, Godfrey Phillips, and VST Industries shot up.

Why? Because investors care about profits. They were worried that the new taxes would eat into the companies' earnings. By increasing prices, the companies have protected their profit margins. In simple terms, they've ensured that the smoker, not the company, bears the full brunt of the new tax. The expected drop in their profits has been minimized, which is great news for shareholders.

So, in the end:

For the Smoker: Your wallet takes a direct hit. This is the biggest price hike in recent times.

For the Government: They collect more tax revenue and hope the high price will discourage smoking.

For the Companies: Their profits are safe, and their stock prices are rising.