ITC is leading the cigarette stocks higher following a tax clarification from Central Board of Excise and Custom (CBEC) which makes it clear that the additional duty of excise will not be levied on cigarettes.
In an interview to CNBC-TV18, KK Modi of Godfrey Phillips outlined the impact of goods and services tax (GST) on his company and the industry.
We are not only in cigarettes. We also make chewing products, said Modi. GST has gone up on chewing tobacco and pan masala.
KK Modi do not see major change in cigarette rates.
"Our chewing business is very small. We have just started but other players will play havoc in the market. Our share is more than 90 percent in cigarette," he said.
On business front, he said that they have a stable relationship with Philip Morris and there is no discussion of either increasing or reducing the stake.
Watch accompanying video for more details.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
