Brief by Shorts91 Newsdesk / 04:52am on 01 Jan 2026,Thursday Business
Shares of major Indian tobacco firms fell sharply on January 1, 2026, after the government announced a new excise duty on cigarettes set to take effect from February 1. The finance ministry’s order imposes levies ranging from ₹2,050 to ₹8,500 per 1,000 cigarettes depending on length, on top of the existing 40% Goods and Services Tax, significantly raising costs for producers and smokers. ITC’s stock dropped over 4% and Godfrey Phillips fell around 8%, marking notable declines in the market as investors reacted to the expected impact on sales and profitability. The tax change is part of broader efforts to curb tobacco use and increase revenue. (PC: Reuters)
