ITC shares slump on worries over higher taxes on cigarettes in Union budget

Written by Reuters | Mumbai | Updated: Jun 24 2014, 19:10pm hrs
ITCUnion health minister Harsh Vardhan has sought an increase in tax on cigarettes of all lengths by Rs 2 to 3.5 per stick.
Shares of India's biggest cigarette manufacturer ITC fall 3 per cent on a media report that the government may raise taxes on cigarettes aggressively in the upcoming budget in July, dealers say.

Union health minister Harsh Vardhan has sought an increase in tax on cigarettes of all lengths by Rs 2 to 3.5 per stick.

"Although the previous government had raised tax on cigarettes by about 19 per cent in February 2013, the increase was too little to lower consumption," the report quoted the minister as saying.