New Delhi, Jan. 1 -- New year cheer seems to be missing for ITC shares that have plunged almost 10% on Thursday, January 01, to their lowest level in nearly three years after the government announced excise duty on tobacco products effective February 1.

According to a Finance Ministry notification last evening, cigarettes will be charged an excise duty ranging from Rs.2,050 to Rs.8,500 per 1,000 sticks. The latest levy is in addition to the higher goods and services tax (GST) rate of 40% applicable on cigarettes, tobacco and other similar products from February 1 as well.

A Bloomberg report, citing Jefferies analysts, said that higher charges imply a tax hike of over 30% if National Calamity Contingent Duty continues.

Following this, I...