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Market leader ITC, which accounts for three out of four cigarettes sold in the country, will need 12-13 per cent weighted average cigarette price hike with around 20 per cent price increase in the king size segment to offset the tax increase, Morgan Stanley said in a report

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While smoking rates have declined over the years, they write, anti-smoking efforts have resulted in a situation in which "the pool of smokers is becoming increasingly concentrated with those with strong preferences for smoking." These smokers aren't easily deterred by tax hikes or anything else

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