Tobacco Shares Plummet Amid New Excise Duty Impact

Shares of major tobacco companies integrated ITC, Godfrey Phillips, and VST Industries fell after the imposition of a new excise duty on cigarettes and tobacco products. This move comes with a revised tax structure effective February 1. ITC posted the largest decline among market indices.

Shares in major cigarette manufacturers ITC, Godfrey Phillips, and VST Industries continued their downward trajectory on Friday following the government's announcement of an additional excise duty, effective from February 1.

ITC's stock experienced a 3.79% drop to close at Rs 350.15 on the BSE, hitting a 52-week low of Rs 345.35 earlier in the day, making it the worst performer among key index stocks.

This regulatory change, which imposes excise duties ranging from Rs 2,050 to Rs 8,500 per 1,000 cigarette sticks based on length, represents a significant shift in taxation for tobacco products.

(With inputs from agencies.)