Cigarette major ITC on Monday hiked the prices of some of its cigarette brands due to increase in excise duty on cigarettes in the Union Budget for 2006-07.
The price of Classic has been increased to Rs 70 from Rs 65 for a packet of 20 cigarettes, which means that each stick would now cost Rs 3.50 instead of Rs 3.25.
Gold Flake Filter Kings will cost Rs 33 for a packet of 10, up from Rs 29.50. A 10s packet of Navy Cut will be dearer by Rs 2, with the new price being Rs 27.
Finance Minister P Chidambaram had announced a 5 per cent duty hike for cigarettes in his Budget.
The new prices will only be effective when the new stocks with the revised prices hit the market, the company said in a statement.
The price of ITC's hugely popular brands Capstan Ft and Gold Flake Premium have not been changed.
Reacting to the 5 per cent duty hike cigarettes, ITC Chairman YC Deveshwar had a few days ago said, "The government should treat all forms of tobacco consumption uniformly." "In India, 50 per cent of tobacco consumption is in the chewing format, and the FM's declared intention is to broaden the tax base.
Cigarettes account for 85 per cent of tax collected from the tobacco sector, therefore over a period of time if there is downturn in consumption, then it would actually shrink the tax base," Deveshwar said.
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