ITC dips as government proposes ban on sale of loose cigarettes

ITC dipped nearly 4% to Rs 346 , Godfrey Philips slipped 3% to Rs 557, while VST Industries down 1% at Rs 1,904 on BSE in early morning trade.

Shares of cigarette makers such as ITC, VST Industries and Godfrey Philips are trading lower by up to 4% on reports that the government moved to amend the anti-smoking law and proposed radical changes.

“The Centre on Tuesday moved to amend the anti-smoking law and proposed radical changes, including a ban on sale of loose cigarettes and raising the minimum age of a person buying tobacco products to 21 years from the existing 18”, the PTI report suggests.

It has also proposed raising of the fine to Rs 1,000 from Rs 200 on smoking in public places, and recommended removal of designated smoking zones in hotels and restaurants.

Among the individual stocks, ITC has dipped nearly 4% to Rs 346 on BSE in early morning trade. Godfrey Philips slipped 3% to Rs 557, while VST Industries down 1% at Rs 1,904 on BSE.