Shares of ITC and Godfrey Phillips fell sharply on January 1, with ITC down 6% and Godfrey Phillips plunging 10%, following the government’s announcement of a new excise duty on cigarettes.
In December 2025, the government approved the Central Excise (Amendment) Bill 2025, which replaces the temporary levy on cigarettes and other tobacco products with a permanent excise structure. The move is aimed at streamlining taxation in the sector but has raised concerns among investors about potential margin pressure for cigarette manufacturers.
Traders will closely watch how the new duty impacts company earnings and pricing strategies in the coming quarters.
