Budget 2023: ITC shares staged wild swings on Wednesday after Finance Minister Nirmala Sitharaman announced higher taxes on cigarettes in the Union Budget 2023-24. 

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In her Budget speech, the finance minister announced a hike in the National Calamity Cintingent Duty (NCCD) on cigarettes — or taxes on cigarettes — by 16 per cent. This is the first increase in the NCCD on cigarettes since the Union Budget for the financial year 2020-21, in which the government had raised the duty by 2-4 times.

The NCCD on specified cigarettes was last revised three years ago. 

Here's a look at the changes in the taxes applicable to cigarettes across categories:

Description Excise duty rate (in rupees per 1,000 sticks)
From To
Other than filter cigarettes, of length not exceeding 65 mm 200 230
Other than filter cigarettes, of length exceeding 65 mm but not exceeding 70 mm 250 290
Filter cigarettes of length not exceeding 65 mm 440 510
Filter cigarettes of length exceeding 65 mm but not exceeding 70 mm 440 510
Filter cigarettes of length exceeding 70 mm but not exceeding 75 mm 545 630
Other cigarettes 735 850
Cigarettes of tobacco substitutes 600 690
(Source: Budget 2023-24)

The stock made its way back into the green zone after an initial knee-jerk reaction to the news, finishing the day with a gain of Rs 9.2 or 2.6 per cent at Rs 361.5 apiece with high volumes on BSE. As many as 27.5 lakh ITC shares changed hands during the session, more than six times its daily average in the past two weeks, according to provisional exchange data. latest stock market action and Budget 2023 highlights on Zeebiz.com