ITC Profit Slumps 15.6% Following Tobacco Tax Hikes

ITC, Godfrey Phillips, and VST Industries reported weaker net revenues and thinner volumes in the April-June quarter following the implementation of a flat 40% GST on tobacco products.

ITC's underlying cigarette revenue fell 31.45% to ₹3,769.11 crore, while VST Industries saw its monthly average cigarette volumes drop 14% to 611 million sticks.

The tax overhaul, effective February 1, introduced an additional excise duty ranging from ₹2,100 to ₹8,500 per 1,000 sticks, prompting manufacturers to raise retail prices by ₹22-25 per pack.