Archive · 14 Jan 2026
ITC Shares Drop Amid Tax Hike Concerns
ITC is a big company that makes cigarettes and other things.
The Indian government said they will make cigarettes more expensive by adding more taxes.
This made people worry, and the price of ITC's shares went down a lot.
Some experts say it's better to wait before buying more shares, while others think the company will do well in the long run.
The shares have been going down for a while, and they are now at their lowest price in a year.
ITC's share price hit a 52-week low of ₹334.85 on January 13, 2026, due to concerns over a tax hike on cigarettes and pan masala.
The Indian government announced an additional excise duty on tobacco products and a cess on pan masala businesses, effective from February 1, 2026.
Several brokerages, including Nuvama, Motilal Oswal, and Axis Securities, have downgraded ITC's stock rating to 'hold' or 'neutral' and revised their target prices downward.
ITC's share price has dropped 17% in January, 20% in the last six months, and 24% in the last year.
Experts believe that the tax hike could shift volumes from legal to illicit brands and lead to downtrading within the legal brands, putting pressure on ITC's earnings.
- Who
- ITC, a major FMCG company in India
- What
- ITC's share price hit a 52-week low due to concerns over a tax hike on cigarettes and pan masala
- When
- The tax hike will be effective from February 1, 2026
- Where
- ITC shares are listed on the BSE and NSE in India
- Why
- The Indian government announced an additional excise duty on tobacco products and a cess on pan masala businesses, leading to a drop in ITC's share price
- Current Share Price
- ₹334.85
- 52-Week High
- ₹471.50 (February 1, 2025)
- Tax Hike Effective Date
- February 1, 2026
- Excise Duty Range
- ₹2,050 to ₹8,500 per 1,000 sticks
- GST on Cigarettes
- 40%
- Overall Tax Burden on Pan Masala
- 88%
- ITC's Share Price Drop in January
- 17%
- ITC's Share Price Drop in 6 Months
- 20%
- ITC's Share Price Drop in 1 Year
- 24%
Sources
ITC share price hits 52-week low, crashes 17% in nine sessions. Should you buy, sell or hold?
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