The new levies on tobacco will be in addition to the GST rate. And it will replace the compensation cess currently levied on such sin goods.

In December, Parliament had approved the Central Excise (Amendment) Bill 2025, which replaces a temporary levy on cigarettes and tobacco products.

Next month onwards, cigarettes, tobacco, and other similar products will attract a goods and services tax (GST) rate of 40%.

In fact, the total taxes on cigarettes in the country currently make up about 53% of retail prices, well below the World Health Organisation benchmark of 75% aimed at discouraging consumption.

ITC shares cracked as much as 10% on the BSE to hit the 52-week low of ₹362.70.

Additionally, a block deal in ITC shares further pressured the stock, according to multiple media reports. CNBC TV-18 reported that 4.03 crore shares (0.31% equity) worth ₹1,614.5 crore changed hands at ₹400 apiece. Mint could not independently verify this report.

In the last year, ITC shares have tumbled 17% while they are down 9% in six months. The company, which is part of the Sensex and Nifty indices, has a market capitalisation of over ₹4,75,000 crore.