ITC shares slump on worries over higher taxes on cigarettes in Union budget
Reuters Posted online: Monday, Jun 23, 2014 at 0000 hrs
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.