ITC hits three-month low

The stock hit a low of Rs 325, its lowest level since March 3, 2014, on the National Stock Exchange.

Shares in ITC are under pressure, down 3% to Rs 326 on NSE, on concerns that the government may increase tax on cigarettes.

The stock opened at Rs 335 and touched a low of Rs 325, its lowest level since March 2014, on the NSE. A combined 3.67 million shares changed hands on the counter so far on NSE and BSE.

Union health minister Harsh Vardhan has sought an increase in tax on cigarettes of all lengths by Rs 2 to Rs 3.5 per stick as well as removal of tax exemption granted to bidi makers, an Economic Times report suggests.

In a letter sent on Thursday, Vardhan urged finance minister Arun Jaitley to raise tax on retail price of cigarettes from 45% to over 60% in the upcoming budget, added report.

The major contribution in the ITC’s revenues is from tobacco products.