Three cigarette stocks rose, rising for the second straight day after the finance minister proposed an increase in excise duty on 'demerit' goods.
The finance minister, in the Union Budget 2012-13 on Friday, 16 March 2012, proposed an increase in excise duty on 'demerit' goods such as hand-rolled bidis, pan masala, gutkha, chewing tobacco, un-manufactured tobacco, zarda scented tobacco and select cigarettes. Reports suggested that cigarette stocks got a boost as market had factored a hike in excise duty on all types of cigarettes, which did not happen. As per the finance minister's latest proposal, the government will levy an additional 10% tax of the current duty on cigarettes of more than 65 millimeters. The tax will be added on an ad valorem basis. The additional ad valorem levy will be charged on 50% of the retail sale price of a packet of cigarettes. Cigarette shares also rose on hopes that increase in excise on chewing tobacco and beedis will tempt users to shift to lower-priced filtered cigarettes. Further, investors are also hoping that cigarette makers may launch filter cigarettes below the 65 millimeters category to avoid the tax hike. On Mon, Mar 19, 2012 at 2:55 PM, karishma suvarna < [email protected]> wrote: > > *Union Bank of India *shares tumbled more 5% to Rs 218 on the NSE after > the rating agency Moody’s had downgraded the stock by one notch from BA1 to > BA2 on weak asset quality and insufficient loss-absorption. > > -- > > Karishma Suvarna > > -- CA. Rajesh Desai -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
