Godfrey Phillips shares fall 17%, most in nine years, after cigarette excise duty notification
Published on 01/01/2026 12:08 PM
Godfrey Phillips shares fall 17%, most in nine years, after cigarette excise duty notificationThursday's drop marked Godfrey Phillips' biggest single-day fall in over nine years and pushed it down 37% from its 52-week high.By Meghna Sen January 1, 2026, 12:08:15 PM IST (Updated)2 Min ReadShares of Godfrey Phillips India Ltd., the distributor of Marlboro in India, declined as much as 17% on Thursday, January 1, after the government notified a hike in excise duty on cigarettes and other tobacco products.
Thursday's drop marked the stock's biggest single-day fall in over nine years and pushed it down 37% from its 52-week high.
The Finance Ministry has notified the imposition of a 40% GST on tobacco, cigarettes, and bidis, effective February 1, 2026. This comprises a 28% tax along with the subsuming of excise and NCCD.
The key question for investors is whether any additional cess or duty will be levied and what the total tax burden will be after the change.
Health concerns linked to smoking have long been seen as a major drain on India's resources. The government has taken steps, including larger warning labels and periodic tax adjustments, to curb consumption.
The announcement comes after the government approved the Central Excise (Amendment) Bill 2025 in December, which replaces a temporary levy on cigarettes and tobacco products.
While the government has not specified the impact of the duty hike on retail prices, analysts say higher taxes could prompt companies to raise prices.
Alongside Godfrey Phillips, ITC shares also fell to nearly two-year lows on Thursday. ITC was the biggest loser on the Nifty 50 index and led declines on the FMCG index, which was trading 1.6% lower.
Shares of ITC fell 4.1% to ₹386.3, marking the stock's first year of negative returns since 2020 after a 12% decline in 2025. These levels were last seen in March 2024, and Thursday's fall was the company's biggest single-day drop in over eight months.Continue ReadingFirst Published: Jan 1, 2026 9:58 AM ISTTagsGodfrey PhillipsGodfrey Phillips IndiaITC share priceshare market today