Cigarette Smokers Shock: GST Taxes

In a major shock to cigarette smokers in India, the GST Council has increased the cess by 48 paise to 79p per stick. It is expected that the prices may double in next few months, but there is no impact to the price immediately as the manufacturing are still studying the details of the decision.
The BSE Sensex and Nifty fell sharply reacting to the news as the shares of ITC plunged nearly 15 per cent.
“In the first 15 days of GST implementation, it was noted that 28 per cent tax plus compensation cess on cigarettes, when translated, had not factored in the impact of cascading effect, resulting in windfall gains for cigarette companies,” Finance Minister Arun Jaitley said.