ITC slumps over 6% on worries over higher taxes in budget

  • Reuters
  • |
  • Updated: Jun 23, 2014 16:13 IST

Shares of India’s biggest cigarette manufacturer ITC Ltd fell more than 6% on a media report that the government may raise taxes on cigarettes aggressively in the upcoming budget in July, dealers said.

Union health minister Harsh Vardhan had sought an increase in tax on cigarettes of all lengths by Rs. 2 to 3.5 per stick, newspaper Economic Times said in a report on Friday.

"Although the previous government had raised tax on cigarettes by about 19% in February 2013, the increase was too little to lower consumption," the report quoted the minister as saying.

 

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