Tobacco

    GST Council retains 28% tax and cess on tobacco, sin goods

    ​​The Union finance minister will decide on the date when the new tax rate for these items will be applicable. Currently, such products attract the highest GST rate of 28% plus compensation cess, central excise duty and national calamity contingent duty, taking the total indirect tax incidence to 53%. Average annual GST collection from tobacco products in the past five years amounted to ₹51,000 crore, along with additional education cess and surcharges from tobacco manufacturers totalling ₹27,660 crore.

    British American Tobacco awaiting RBI approval to check out of ITC Hotels

    British American Tobacco (BAT) awaits RBI approval to sell its 15.29% stake in ITC Hotels, a holding dating back to the early 1900s. CEO Tadeu Marroco stated the sale would help BAT reduce debt by 2026. Following the hotel business's demerger from ITC, BAT became a major shareholder in ITC Hotels.

    ITC Hotels Share Price 217.547.32 (3.49%)
    BAT bets big on India again, as ITC seeks to expand tobacco trade deal

    ITC's raw tobacco sales to British American Tobacco (BAT) surged by 35% to ₹1,445 crore in FY25, accompanied by a near doubling of advances to ₹1,690 crore. ITC seeks shareholder approval to expand tobacco exports to BAT up to ₹2,320 crore by 2026-27.

    NCLAT sets aside direction for forensic audit of Golden Tobacco, reinstates Resolution Professional

    The National Company Law Appellate Tribunal (NCLAT) has overturned the National Company Law Tribunal's (NCLT) orders regarding Golden Tobacco. These orders included a forensic audit and a change in the resolution professional. NCLAT has also extended the Corporate Insolvency Resolution Process (CIRP) timeline to October 17, 2025.

    ITC leveraging AI for supply chain efficiency, demand forecasting

    ITC Limited is using AI to create new products and understand consumer trends. The company is also improving its digital supply chain to serve different retail channels. They are launching over 100 products annually. Reliance Grocery Retail CEO Damodar Mall notes quick commerce boosts consumption. He questions the long-term sustainability of quick commerce due to subsidized costs.

    ITC Share Price 399.903.10 (0.79%)
    Tobacco licence validity extended

    The government has extended the validity of registration certificates or licenses for tobacco farmers from one year to three years. This change aims to assist approximately 83,500 farmers across Andhra Pradesh, Karnataka, Telangana, and Odisha in managing their license renewals for around 91,000 barns.

    Philip Morris weighs cigar sale amid smoke-free shift

    Philip Morris International is considering a sale of its US cigar business, with hopes of fetching over $1 billion. This move aligns with their shift towards smoke-free products, with 40% of sales already originating from such products. The transition includes acquiring Zyn nicotine pouches and surpassing Marlboro with IQOS heated tobacco products.

    Tobacco exports to cross Rs 13,000 cr this yr: Official

    India's tobacco exports are set to grow by over 8 per cent and exceed Rs 13,000 crore this year. The Tobacco Board supports farmers through various measures to enhance income and production quality. India's production is regulated to meet domestic and export demands, ensuring stability for the tobacco industry.

    Proposal to impose 35% GST on 'sin goods' not a good idea: SJM

    The Swadeshi Jagran Manch, along with other trade bodies, criticizes the proposed 35% GST on "sin goods" like tobacco and aerated beverages. They argue this higher tax slab will fuel smuggling, revenue loss, and harm small retailers while burdening consumers. They urge the government to simplify GST and reduce rates instead.

    Must Watch