Budget 2022: Government keeps sin products tax unchanged; tobacco stocks surged - ITC, Godfrey Phillips stocks in focus
Almost every budget, the street always turns cautious on the stock amid fear of an increased tax on the sin product.
As the government keeps the taxes unchanged for the sin products, the cigarette manufacturing companies, including index heavyweight ITC surged up to 3.5 per cent on the BSE. The finance minister Nirmala Sitharaman presented her 4th Budget for the fiscal 2022-23 on Tuesday.
Individually, the fast-moving consumer goods (FMCG) major and a cigarette maker ITC surged almost 3.5 per cent, followed by Godfrey Phillips up almost 3 per cent, Golden Tobacco up 1.5 per cent and NTC industries up over 1.3 per cent on the BSE at the close.
Surging intraday, VST Industries shares ended flat with negative bias, down merely 0.3 per cent on the BSE at the close.
Despite being a FMCG company, ITC earns around 40 per cent of the total revenue from cigarette or tobacco business. Almost every budget, the street always turns cautious on the stock amid fear of an increased tax on the sin product.
Most of the analysts see it as positive for the cigarette manufacturers, including for ITC as the FM didn’t make any changes in the taxes of the category.
The index major is also scheduled to release its financial results for the October-December quarter of the financial year 2021-22 on February 3, Thursday. Moreover, the company is also going to consider declaration of interim dividend for the financial year ending March 2022.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.