Godfrey Phillips Stock Plunges 10% Amidst New Tobacco Excise Duty Hike

• Godfrey Phillips shares fell 10% on January 1, 2026, marking their biggest one-day drop in five months.
• The decline follows a government notification to increase excise duty on cigarettes and tobacco products.
• From February 1, 2026, 40% GST will apply to tobacco, cigarettes, and bidis, subsuming excise and NCCD.
• The announcement comes after the passing of the Central Excise (Amendment) Bill 2025.
• ITC shares also hit a nearly two-year low, falling 4.1% and dragging the FMCG index down.

Why It Matters: New excise duty on tobacco products caused significant stock drops for Godfrey Phillips and ITC.