Government's No-Tax Hike Decision on Tobacco Leaves Activists Fuming: A Setback for Public Health Efforts

In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced no increase in excise duty or National Calamity Contingent Duty (NCCD) on cigarettes and tobacco products. This decision has led to a surge in shares for companies like ITC, Godfrey Phillips, and VST Industries as investors reacted positively to the news. Analysts had previously speculated about potential tax hikes, but the government's decision to maintain current tax rates is expected to support legal cigarette sales and curb illicit trade. This move aligns with historical trends indicating that steep tax increases can negatively impact revenue growth.

 

Source: Economic Times, Money Control, NDTV Profit