Data Science, MGADS,

ITC Feels the GST Burn!

If you think the Goods and Services Tax (GST) has hit you hard, think again. The biggest cigarette maker in India, ITC witnessed a massive slump in its stocks with revised taxes being levied on tobacco products. The cigarette maker witnessed a dip of 14.1% in its stocks on July 18, 2017.

The prices of cigarettes were amended after Finance Minister, Arun Jaitley’s announced the implementation of a higher tax on the product, resulting in a rise of approximately Rs.792/thousand sticks.

ITC dominates about 80% of the Indian cigarette market, and this is not the first time that the company has seen its numbers taking a hit. As per the company, high taxes and the availability of cheaper tobacco consumption options have been affecting ITC’s standing in the market. However, its recent loss is the biggest the company has witnessed in last 25 years.

Did you know India has the second largest number of women smokers in the world? Yes, while the overall number of smokers in India is reported to have been decreasing, the number of women lighting up a cigarette is on a rise.

Picture Credit: Times of India

Picture Credit: Times of India

Here are some more interesting facts and data about the Indian cigarette and tobacco market.

Picture Credit: Times of India

Are cigarettes burning a hole in your pocket? Yes, you are probably reducing all your cash to ash:

Picture Credit: Indian Express

Picture Credit: ICICILombard

Now that cigarette prices are likely to shoot up, do you think more people will kick the butt?

About MGADS

Manipal Global Academy of Data Science offers cutting-edge learning solutions in the field of data science. MGADS faculty comprises of academicians, data science experts, and IT professionals to guide you in today’s competitive environment. If you are keen on becoming a data scientist, MGADS will equip you to do the same.

Sources:

http://www.livemint.com/Industry/9pLAJk1eEmZTdjJGqeQBDJ/Are-Indians-smoking-fewer-cigarettes.html

https://www.ft.com/content/2b3a6d73-bd56-3bf5-bbd2-d8b88b7c57b2

http://www.thehindubusinessline.com/markets/stock-markets/itc-slumps-after-tax-increase-on-cigarettes/article9774063.ece

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