Kolkata. ITC Limited has decided to increase the price of cigarettes by 10 to 20 percent. The company has taken this step after increasing the tax on cigarettes in the budget. The maximum increase has been made in small and regular size cigarettes, which has the largest share in the company's sales. Three out of every four cigarettes sold in the country are from ITC. The company has increased prices in the premium segment by 10 percent. At the same time, the price of regular cigarettes of 69 mm length has been increased by about 14-16 percent. Cigarette prices of less than 64 millimeters have been increased by 12 to 20 percent. This price increase is different for each brand.
A ITC spokesperson confirmed that the prices of many brands have been changed. However, he did not share any other data related to it. Two industry officials said that other cigarette companies like Godfrey Phillips and VST Industries are also going to increase prices in the next few days. In the budget, it was announced to increase the National Calamity contingent duty (NCCD) on cigarettes.
After this, NCCD will now be imposed on cigarettes between 212 percent and 388 percent, which will depend on its size. NCCD is levied as a duty on excise. Experts had estimated that after the budget the net tax would increase by about 10 percent, while the specific tax on each cigarette could be increased by about 13 percent. The maximum tax on low-priced cigarettes of 64 millimeters has been increased.
On the Bombay Stock Exchange, ITC shares rose 0.95 per cent to close at Rs 212.7, while the benchmark Sensex rose 0.58 per cent on this day. ITC shares fell to a 52-week low after raising taxes in the budget. According to industry executives, ITC has increased the price of premium brands like American Club Cool Fresh Test from Rs 200 to Rs 220 per pack (20 cigarettes).
The price of 10 cigarette navy cut packs in regular size category is Rs 69. Has been increased from Rs. 80 to Rs. 80, while the price of flex filter has been increased from Rs. 70 to Rs. 80. The price of Gold Flake Super Star of less than 64 millimeters has been increased from Rs 49 to Rs 59. At the same time, the price of Flex Special Filter and Wave Cool Mint has been increased from Rs 50 to Rs 60. The price of Duke special filter has increased from 40 to 45 rupees.
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