ITC Ltd.

Tobacco major -ITC- has hiked cigarette prices by 5-16 percent, a move that comes close on the heels of the Union Budget proposing a hike in excise duty of cigarettes by 15 percent. In the Union Budget 2012, the finance minister introduced an ad valorem component in cigarette (length greater than 65mm) in addition to the existing specific duty, 10 percent ad valorem excise duty will be levied on 50 percent of maximum retail price (MRP) which is 5 percent of MRP.

Cigarette major had last in the month of September, 2011 hiked the prices of its mid-sized brands Wills Navy Cut, a move that followed an increase in value-added tax (VAT) on cigarettes in Andhra Pradesh from 14.5 percent to 20 percent.

ITC, a diversified conglomerate has business interests in cigarettes, hotels, paperboards and specialty papers, packaging, agri-business, packaged foods and confectionery, information technology, branded apparel, personal care, stationery, safety matches and other FMCG products.