According to industry sources, ITC has increased the prices of its brands -- Classic, Gold Flake and Silk Cut in the range of Rs 2-8 per pack. The new pricing would be applicable as soon as new batches with the revised MRP are available in the market.
However, the company spokesperson did not comment on the details but said, "prices have been revised in select brands." ITC has brands like Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake in its portfolio.
Similarly, another cigarette major Godfrey Phillips India (GPI) is also expected to take a call on whether to increase the prices or not.
According to sources, though nothing has been finalised yet on the price front, but these decisions are in the pipeline. However, company officials could not be contacted for details.
Godfrey Phillips India is known for its brands like Four Square, Red & White, Jaisalmer and Cavanders along with innovative brands such as Stellar, I Gen and Tipper.
The development would make filtered cigarettes more expensive. Union Finance Minister P Chidambaram had tried to bring the non filter cigarettes at par with the filtered ones by increasing the excise duty on them. However excise on filtered cigarettes was kept unchanged.
Cigarettes attract duty at varying rates depending upon whether they are filter or non-filter and their length. Excise duty rates on non-filter cigarettes had been enhanced to bring them at par with filter cigarettes of corresponding length. Tobacco and related products attract as much as 30 per cent taxes annually.
