GST effect : ITC soars 6 per cent
DSIJ Intelligence / 03 Jul 2017
Shares of ITC Ltd soared by 6.05 per cent intraday on July 3, 2017 after the changes made on cigarettes taxes.
Shares of ITC Limited soared by 6.05 per cent intraday on July 3, 2017 after the changes made on cigarettes taxes.
In the last weekend, the Central Board of Excise and Customs (CBEC) has removed the basic excise and the additional excise duty on the cigarettes but the National Calamity Contingent Duty will continue to be levied.
It was believed that this development will result in lowering the overall tax burden per cigarette by around 7-9 per cent on an average in a meanwhile bidis are expected to face rise in the tax rate.
This positive move is expected to boost the stock prices of the ITC Limited as well as it will increase the earnings of the company. It provides an opportunity to gain the market share. It was expected that for the FY18, the sales of cigarettes will grew over 15 per cent with 8-10 per cent increase on the back of realisation from good and service tax.
On July 3,2017, ITC Limited was trading at Rs 343.65, up by 6.11 per cent on BSE at 11:26 hours. ITC opened at Rs 345.25 while on Friday it closed at Rs 323.85.
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