India Tobacco's stock price fell on Thursday after the government imposed new taxes on cigarettes, making it more expensive for about 100 million smokers in the world's most populous country to buy cigarettes. Gold Flake manufacturer and market leader ITC fell 4.4%, while the country's Marlboro distributor Godfrey Phillips India fell 7.7%. ITC's stock price was reported at 385.25 rupees, the lowest level since June 2024, and is also expected to record the worst single-day performance since February 2022. ITC was the single stock with the biggest decline in the Nifty 50 Index, and also led the decline in the FMCG Index, which fell 1.6%. India's Ministry of Finance issued a notice on Wednesday evening to levy consumption tax of 2,050-8,500 rupees per 1,000 cigarettes starting February 1. The tax amount depends on the length of the cigarette. Health issues related to smoking are seen as a major drain on India's resources, and the government has introduced a range of measures, including increased warning labels and regular tax adjustments, to curb tobacco consumption. ICICI Securities analysts said the tax would increase the overall cost of 75-85 mm cigarettes by 22%-28%.

India Tobacco's stock price fell on Thursday after the government imposed new taxes on cigarettes, making it more expensive for about 100 million smokers in the world's most populous country to buy cigarettes. Gold Flake manufacturer and market leader ITC fell 4.4%, while the country's Marlboro distributor Godfrey Phillips India fell 7.7%. ITC's stock price was reported at 385.25 rupees, the lowest level since June 2024, and is also expected to record the worst single-day performance since February 2022. ITC was the single stock with the biggest decline in the Nifty 50 Index, and also led the decline in the FMCG Index, which fell 1.6%. India's Ministry of Finance issued a notice on Wednesday evening to levy consumption tax of 2,050-8,500 rupees per 1,000 cigarettes starting February 1. The tax amount depends on the length of the cigarette. Health issues related to smoking are seen as a major drain on India's resources, and the government has introduced a range of measures, including increased warning labels and regular tax adjustments, to curb tobacco consumption. ICICI Securities analysts said the tax would increase the overall cost of 75-85 mm cigarettes by 22%-28%.