16% increase on cigarette duty as smoking becomes more expensive
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New Delhi: Smoking will become an expensive habit as a result of the increased customs charge and the upcoming 16% tax increase on cigarettes. Nirmala Sitharaman, the finance minister, made the declaration during the presentation of the Union budget on Wednesday.
After Finance Minister Nirmala Sitharaman proposed a rise in cigarette taxes in the Union Budget, shares of cigarette companies, including Godfrey Phillips India and ITC Ltd, fell by up to 5% on the BSE on Wednesday.
The stock of Godfrey Phillips slumped as much as 4.92 per cent to Rs 1,828.75 on the BSE, while Golden Tobacco declined 3.81 per cent to Rs 59.4.
Shares of ITC were trading 0.78 per cent lower at Rs 349 on the bourse.
NTC Industries dropped 1.4 per cent and VST Industries slipped 0.35 per cent.
With PTI inputs