India, Jan. 1 -- The government has imposed additional excise duty on tobacco products from 1 February 2025, making cigarettes costlier for an estimated 10 core smokers in the world's most populous country.

The finance ministry has notified an excise duty of Rs.2,050-8,500 per 1,000 sticks, depending on cigarette length, effective 1 February. That's over and above the 40% GST rate applicable on tobacco products.

The move pulled down stocks of ITC Ltd. and Godfrey Philips India Ltd. on the first trading session of the new year.

ITC, maker of Gold Flake and Classic cigarettes and the market leader, dropped 2%, while Godfrey Phillips India-the distributor of Marlboro cigarettes in India-fell 4.1%. ITC was the biggest loser on the Nifty 50...