Godfrey Phillips Shares Plunge 15% on New Cigarette Excise Duty

• Godfrey Phillips India shares plummeted 15.4% on January 1, marking the largest single-day drop in 22 months.
• The decline was triggered by the central government's new excise duty on cigarettes, ranging from Rs 2050 to Rs 8500 per thousand sticks.
• The new duty, replacing the compensation cess, will be effective from February 1, 2026, following the 'Central Excise (Amendment) Bill 2025'.
• Excise duty will also apply to pan masala and tobacco products from February 1, alongside existing 40% GST.
• The company's market capitalization fell to Rs 36,800 crore, with shares down 30% in three months.

Why It Matters: New excise duty on cigarettes caused Godfrey Phillips India shares to drop significantly.