ITC may not need to hike cigarette prices after tax rate cut, vaping ban

The firm is likely to be a major beneficiary of the tax rate cut, and is likely to post a 19% earnings growth during FY20

ITC may not have to increase cigarette prices for the rest of the ongoing fiscal year after reaping the benefits of a cut in corporation tax rates and the ban on vaping in the country.

According to a report from Morgan Stanley, after the Centre announced a reduction in corporation tax rates from 30 per cent to 22 per cent, it doesn’t expect ITC to hike cigarette prices as the firm, is likely to be one of the biggest beneficiaries of the cut. It estimated that ITC will be able to post a 19 per cent earnings growth during the 2019-20