Government lowers tax on cigarettes under GST



CHENNAI: Three days into the new tax regime, cigarette firms saw a sharp spurt in share prices on the backs of a government notification stating that cigarettes will be exempted of additional excise duty under the goods and services tax (GST) regime.
The decision, according to analysts, is set to see as much as 7-9 per cent decrease in total taxation on cigarettes under the new tax system. The reports saw share prices of India’s largest cigarette maker ITC shoot up to a record high of Rs 353.20 apiece.Other cigarette makers like Godfrey Phillips India (3.4%) and VST Industries (4.4%) also saw significant rises.
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