Godfrey Phillips Shares Plunge 17% After Cigarette Excise Duty Hike

• Godfrey Phillips shares plummeted 17%, their biggest single-day fall in nine years, following a government notification on excise duty.
• The government announced a 40% GST on tobacco, cigarettes, and bidis, effective February 1, 2026, including a 28% tax.
• The move, aimed at curbing smoking due to health concerns, replaces a temporary levy approved by the Central Excise (Amendment) Bill 2025.
• ITC shares also dropped 4.1% to ₹386.3, hitting nearly two-year lows and leading declines on the Nifty 50 and FMCG index.
• Analysts predict higher taxes could force companies like Godfrey Phillips and ITC to increase retail prices.

Why It Matters: Tobacco stocks Godfrey Phillips and ITC crashed after a significant government excise duty hike.