ITC Shares in Focus: New Cigarette Tax Takes Effect, Stock Sees Worst January on Record
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CNBC TV18•01-02-2026, 08:23
ITC Shares in Focus: New Cigarette Tax Takes Effect, Stock Sees Worst January on Record
- •ITC shares are under scrutiny as a new 40% GST on tobacco and cigarettes becomes effective from February 1, 2026.
- •Finance Minister Nirmala Sitharaman's Budget 2026 announcement is awaited for further clarity on additional duties and total tax impact.
- •The new tax structure replaces the previous 28% GST plus various cesses, potentially increasing the overall tax burden.
- •Analysts have issued numerous 'sell' recommendations, reaching a 15-year high, due to the expected impact on ITC.
- •ITC shares plummeted 20% in January, marking its worst start to a calendar year and shedding over ₹1 lakh crore in market capitalization.
Why It Matters: New cigarette tax impacts ITC shares, leading to record January losses and analyst downgrades.
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