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Govt constitutes panel on future taxation policy for tobacco

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The panel is formed to make India compliant with the R component of WHO’s MPOWER plan. R stands for "raise taxes on tobacco".

Govt constitutes panel on future taxation policy for tobacco
The government has constituted an expert panel on future taxation policy for tobacco. The committee is formed by the Ministry of Health & Family Welfare.
The panel consists of representatives from the Ministry of Health, Department of Revenue, GST Council, Customs, NITI Aayog, and WHO. The panel will develop a roadmap for tobacco tax policy. The panel is formed to make India compliant with the R component of WHO’s MPOWER plan. R stands for "raise taxes on tobacco".
The panel will suggest recommendations from Budget FY23 onwards. The move is likely to have a short-term impact on ITC, Godfrey, and VST Industries but in the long term, it may have a positive impact as there will be predictability in the policy.
How stocks fared
ITC's share price declined nearly 5 percent following the development. On Tuesday, the cigarette-cum-FMCG stock hit an intraday low of Rs 247 on the Bombay Stock Exchange.
ITC share price quoted at Rs 248.85 apiece at 2:41 pm, down Rs 13 or 5.22 percent — sharply lower from the 52-week high of Rs 265 it had hit Monday.
VST Industries slumped nearly 3 percent to Rs 3,705. It was priced at Rs 3,718, down 2.4 percent. Godfrey Phillips India showed mixed performance as the stock surged over 1 percent to hit the intraday high of Rs 1,331. And then slumped over 3 percent to hit the intraday low of Rs 1,272.
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