During the budget of 2023-23, the Finance Minister has announced a steep increase on the National calamity cess on cigarettes and tobacco causing the shares of ITC, Godfrey Phillips, and VST Industries of decline as of Wednesday
The Government has increased the National calamity cess on cigarettes to 16%. The last time the government had increased this tax was during the budget of FY21 which was 2-4 times across the cigarette stick sizes, this has resulted in tax hikes of 9-15%
After the announcement of this news, the shares of ITC ltd, Godfrey Philips and Vst Industries fell immediately after the announcement of the tax hikes.
While the shares of ITC ltd and Vst Industries have managed to recover immediately after this fall, the shares of Godfrey Philips are still at a negative of 2.68%.
This resultant tax increase will increase the overall prices of cigarettes which will be paid by the consumers
Written By Aaron Vas
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