ITC plunges over 8% as govt hikes excise duty on cigarettes

Cigarette stocks, led by ITC, took a severe beating today and fell over 8 per cent following the Budget proposal to increase excise duty.
Shares of ITC tanked 8.27 per cent to Rs 361.25 on the BSE. During the day, it plunged 11.12 per cent to Rs 350.
The heavyweight stock was the biggest loser among the 30-Sensex scrips.
Stocks of Godfrey Phillips India were down by 1.90 per cent, while VST Industries fell by 0.86 per cent on the BSE.
Finance Minister Arun Jaitley today came down heavily on smokers and tobacco consumers with a steep increase in excise duty.

Citing need for promotion of public health, Jaitley said: "Excise duty on cigarettes is being increased by 25 per cent for cigarettes of length not exceeding 65 mm and by 15 per cent for cigarettes of other lengths. Similar increases are proposed on cigars, cheroots and cigarillos."
He made changes to the compounded levy scheme applicable to pan masala, gutkha and certain other tobacco products.