NEW DELHI: Cigarette prices will not be changed after the Centre announced no tax hike on Tobacco products in the Union Budget 2024 presented on Tuesday.
While the Goods and Services Tax (GST) Council holds primary authority over the taxation of tobacco products, the central government also levies a National Calamity Contingent Duty (NCCD) on cigarettes, which can be adjusted during the Union Budget.
Union finance minister Nirmala Sitharaman kept tobacco taxes unchanged in her recent Budget speech, maintaining the rates that were last modified with a 16 percent increase in NCCD the previous year.
India’s largest cigarette manufacturer ITC‘s shares subsequently surged nearly 5 percent, with the stock trading at ₹ 488.35 on the National Stock Exchange (NSE).
ITC heavily relies on cigarettes as a significant source of revenue, with the product accounting for more than 80 percent of the company’s net profit and approximately 45 percent of its total revenue.
“ITC shares have consistently posted positive returns on Budget Day over the past decade, even amid several tweaks in the NCCD tax,” according to a report by the Economic Times.
While the Goods and Services Tax (GST) Council holds primary authority over the taxation of tobacco products, the central government also levies a National Calamity Contingent Duty (NCCD) on cigarettes, which can be adjusted during the Union Budget.
Union finance minister Nirmala Sitharaman kept tobacco taxes unchanged in her recent Budget speech, maintaining the rates that were last modified with a 16 percent increase in NCCD the previous year.
India’s largest cigarette manufacturer ITC‘s shares subsequently surged nearly 5 percent, with the stock trading at ₹ 488.35 on the National Stock Exchange (NSE).
ITC heavily relies on cigarettes as a significant source of revenue, with the product accounting for more than 80 percent of the company’s net profit and approximately 45 percent of its total revenue.
“ITC shares have consistently posted positive returns on Budget Day over the past decade, even amid several tweaks in the NCCD tax,” according to a report by the Economic Times.