India, Jan. 1 -- Shares of India's largest cigarette maker ITC Ltd. fell the most in six years after the government imposed higher tax on tobacco products.

From 1 February 2026, cigarettes will be charged an excise duty of Rs.2,050-8,500 per 1,000 sticks, according to a government notification released late Wednesday. That's on top of GST at 40% on tobacco-based products and cigarettes-also kicking in from 1 February.

ITC's share price dropped as much as 9.8%, the most since 2020, while Godfrey Phillips India Ltd. dropped 17.6% on the BSE. ITC sells cigarette brands like Classic and Gold Flake, while Godfrey sells Marlboro and Four Square.

On 22 September 2025, the Narendra Modi government cut GST rates on soaps to small cars in the bi...