cigarettes will be expensive
On April 29, there was a good rise in the shares of cigarette companies. According to reports, ITC and Godfrey Phillips may increase cigarette prices by about 17% from next month. After this news, ITC shares rose by about 4% and Godfrey Phillips shares rose by 6.5%.
Not only premium, even cheap brands will become expensive
It has been said in the report that the price increase will not be limited to premium cigarettes only. Companies can also increase prices in their value segment i.e. cheap brands. This will also affect common consumers. For example, ITC’s Goldflake premium packet may increase from around Rs 115 to Rs 135 in May 2026.
impact of tax increase
The tax burden on cigarette companies has increased after Parliament passed the Central Excise (Amendment) Bill, 2025 earlier this year. Now, apart from 40% GST on cigarettes, excise duty of Rs 2,050 to Rs 8,500 is also being imposed on 1,000 sticks. According to experts, due to this the total cost of 75-85 mm cigarettes has increased by 22-28%, the effect of which is now visible in the prices.
Impact on markets and companies
Nifty FMCG index was also seen trading with a rise of about 2%, in which ITC was at the forefront. Experts believe that increasing prices may have a slight impact on sales initially, but cigarette companies have the ability to maintain profits by increasing prices.
Will it get more expensive going forward?
If tax and cost pressures continue, we may see a further increase in cigarette prices in the future. At present, consumers may have to pay more for cigarettes from May.
