New Delhi, Jan. 2 -- Shares of ITC Ltd fell sharply by 10 per cent, while Godfrey Phillips India went down by about 9 per cent, after the government announced a steep increase in excise duty on tobacco and tobacco products. The sharp fall in both stocks reflected the immediate market reaction to the higher tax burden on tobacco products.
The revised excise duty structure increases taxes on tobacco across categories, over and above the existing Goods and Services Tax (GST). The move is expected to raise cigarettes and other tobacco products prices, as manufacturers will need to pass on the higher tax cost to consumers.
Following the announcement, ITC witnessed one of its steepest single-day declines in recent times, while Godfrey Phillips ...