Cigarette stocks today rose by as much as 5 per cent even as the government continued with the crackdown on cigarettes, bidis and tobacco products by increasing taxes in the Budget 2017-18.
Shares of ITC surged 4.51 per cent, Golden Tobacco jumped 4.85 per cent, VST Industries gained 3.03 per cent and Godfrey Phillips rose by 0.87 per cent on BSE.
Marketmen said that hike in excise duty was below market expectations.
Smokers and tobacco consumers will have to pay more for their indulgence as Finance Minister Arun Jaitley continued with the crackdown on cigarettes, bidis and tobacco products by increasing taxes in the Budget 2017-18.
Excise duty on unmanufactured tobacco has been almost doubled to 8.3 per cent from 4.2 per cent earlier, while that on pan masala has been hiked to 9 per cent from 6 per cent.
Likewise, excise duty on cigar, cheroots has been changed to 12.5 per cent or Rs 4,006 per thousand, whichever is higher from 12.5 per cent or Rs 3,755 per thousand, whichever is higher. Excise duty on chewing tobacco, including filter khaini and jarda scented tobacco has also been doubled to 12 per cent from 6 per cent earlier.
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