“Cigarette Prices Unchanged as Budget 2024 Maintains Tobacco Tax Rates”
In a recent move welcomed by the tobacco industry, cigarette prices will remain stable following the announcement of no increase in tobacco taxes in the 2024 Union Budget. Finance Minister Nirmala Sitharaman confirmed that the government has opted against raising existing tax rates on tobacco products, a decision that has positively impacted the market.
In a recent move welcomed by the tobacco industry, cigarette prices will remain stable following the announcement of no increase in tobacco taxes in the 2024 Union Budget. Finance Minister Nirmala Sitharaman confirmed that the government has opted against raising existing tax rates on tobacco products, a decision that has positively impacted the market.
The price freeze comes as a significant boost for ITC Limited, India’s largest cigarette producer. The company’s shares saw a notable increase of up to 5 percent following the budget announcement, with the stock trading at ₹488.35 on the National Stock Exchange (NSE), up by 4.67 percent from previous levels.
Tobacco taxation is regulated under the Goods and Services Tax (GST) Council, with the central government also imposing a National Calamity Contingent Duty (NCCD) on cigarettes. The NCCD is adjusted annually in the Union Budget, and last year saw a 16 percent increase. However, this year’s budget maintains the current tax rates.
Cigarettes remain a critical revenue source for ITC, contributing over 80 percent of the company’s net profit and approximately 45 percent of its total revenue. Historical data reveals that ITC shares have consistently performed well on Budget Day, regardless of fluctuations in NCCD tax rates.
Sources By Agencies
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