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Tobacco makers' shares decline amid reports of GST hike on tobacco products 
(20 Feb 2025)
Godfrey Philips India (down 4.71%), VST Industries (down 3.34%) and ITC (down 1.08%) declined.

Media reports suggest the government may increase the GST on cigarettes and other tobacco products once the compensation cess ends. Currently, these products, classified as 'sin goods,' are taxed at 53% (28% GST plus other levies), short of the WHO's 75% target. A potential strategy is to raise the GST to the 40% limit and add an excise duty. Tobacco products, including cigarettes and pan masala, contribute significantly to government revenue.

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