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The government's steep increase in taxes on cigarettes and tobacco products has started weighing on the country's leading cigarette makers, with ITC, Godfrey Phillips India, and VST Industries reporting declines in net revenue, volumes and profitability in the April-June quarter, the first full quarter after the revised tax regime came into effect. The three companies together account for more than 90 per cent of the domestic cigarette market, which, according to some reports, has an estimated annual volume of over 100-120 billion sticks. Earlier in February this year, the government raised the goods and services tax (GST) on cigarettes and tobacco products to a flat 40 per cent. It replaced the compensation cess with a new additional excise duty ranging from Rs 2,100-8,500 per 1,000 sticks, depending on cigarette length. Though reported revenues (from operations) of cigarette companies surged as the higher duty component was reflected in sales, their underlying revenues (net revenu
Opponents of smoking got a breath of fresh air as Parliament passed a bill that will put cigarettes out of reach for future generations. "The end of smoking, and the devastating harm it causes, is no longer uncertain - it's inevitable," Hazel Cheeseman, chief executive of Action on Smoking and Health, said after a decades-long campaign in favour of legislation approved Tuesday. Children born after December 31, 2008 will be banned from ever buying cigarettes under the Tobacco and Vapes Bill. The legislation that needs approval by King Charles III - a formality - before taking effect will also allow the government to regulate tobacco, vaping and nicotine products, including flavours and packaging. It is currently illegal to sell cigarettes, tobacco products or vapes to people under 18. But most youths today will continue to face a ban their entire life as the minimum age to buy cigarettes rises each year. The passage gives the UK one of the toughest anti-smoking measures in the worl
The Insolvency appellate tribunal NCLAT has set aside the directions of the NCLT for a forensic audit of Golden Tobacco, and a change in the resolution professional of the debt-ridden cigarette maker. Passing an order over a batch of petitions filed against the NCLT order, the National Company Law Appellate Tribunal also extended the timeline for completing the CIRP (Corporate Insolvency Resolution Process) of Golden Tobacco till October 17, 2025. Besides, the appellate tribunal has also directed the NCLT to decide over the claims of financial creditors -- Central Bank of India, Arrow Engineering and others and then to reconstitute the lenders' body -- Committee of Creditors (CoC). "The direction of the Adjudicating Authority to conduct a forensic audit by KPMG is set aside," said a two-member bench comprising Chairperson Justice Ashok Bhushan and Member Barun Mitra. Vadodara-based Golden Tobacco owns cigarette brands such as Panama, Chancellor, Golden's Gold Flake and Taj Chhap. I
British multinational BAT Plc on Wednesday divested a 3.5 per cent stake in FMCG-to-hotel conglomerate ITC Ltd for Rs 17,485 crore through open market transactions. British American Tobacco Plc (BAT), through its affiliate Tobacco Manufacturers (India) Ltd, offloaded more than 43.68 crore equity shares of ITC, amounting to 3.5 per cent stake, according to the block deal data available with the BSE. The shares were sold in 48 tranches, with an average price of Rs 400.25 apiece, taking the transaction value to Rs 17,484.97 crore.