Shares of ITC and Godfrey Phillips were in the spotlight today after reports emerged that the government is exploring a mechanism for an additional levy on tobacco-related products.
According to NDTV Profit, the government is considering two options: increasing the central excise duty across various tobacco categories or introducing a new health levy, which would require an amendment to the law via Parliament. The move comes as part of a broader plan to phase out certain cesses.
The additional levy is expected to come into effect in the fourth quarter of the current fiscal year. Officials have clarified that the overall tax incidence on tobacco products will remain largely unchanged. Notably, other items currently taxed at a 40% special rate, such as luxury cars, bikes, and carbonated drinks, are expected to remain unaffected.
As of 10:09 AM, ITC shares were trading 0.41% higher at Rs 409.00. On the other hand, Godfrey Phillips shares were trading 2.08% down at Rs 10,843.00.
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