ITC, Godfrey Phillips Share Price Fall as Government Plans New Cess For Keeping Tobacco Prices High 

Mumbai, December 1, 2025: The shares of tobacco companies such as ITC and Godfrey Phillips fell today in the early trade after the Indian government announced that it is planning to introduce a new cess to ensure that the prices of tobacco products continue to be high. In early trade, the share price of ITC fell by 1.5%, and the price of Godfrey Phillips fell by 2.2%. However, both the shares have performed better in the afternoon session, with their share price stabilising after the early fall. 

Government Announces Plans for a New Cess on Tobacco Products 

The early fall in the share price of ITC and Godfrey Phillips came after the Indian government announced that it is planning to introduce a new cess, which will be aimed at maintaining the high prices for tobacco products. This comes as Indian Finance Minister Nirmala Sitharaman will introduce the Health Security National Security Cess Bill, 2025 in Parliament along with an amendment to the Central Excise Act. 

The cess bill will look to impose a new cess on tobacco products such as cigarettes, pan masala, and gutkha. It will be introduced to ensure that even after the removal of existing compensation cess on tobacco products, the new cess keeps the prices of tobacco products high. 

Cabinet Cleared Both Bills 

The two bills were recently cleared by the Cabinet in its meeting. While approving the bills, the cabinet noted that the new cess will help keep the prices of tobacco products high, which is better for India to ensure that they are consumed by lesser Indian citizens. In September, the Indian government introduced GST reforms, which lowered the GST slabs to two (5%, and 18%). However, the government also replaced the 28% tax slab with a special 40% rate for select goods, which included tobacco products. With the new cess, the prices of tobacco products will remain high. 

Share Price Snapshot for ITC and Godfrey Phillips

ITC Ltd traded almost flat on December 1, 2025. The ITC share price declined 0.049% to close at ₹404.05 at 3:30 pm IST. Earlier in the day, the stock touched ₹403.10 at 11:10 am, after opening at ₹402.80. ITC moved within a range of ₹405.50 and ₹398.20 during the session. The company currently holds a market capitalisation of ₹5.06 lakh crore, with a P/E ratio of 14.46 and a dividend yield of 3.55%. ITC’s 52-week range stands between ₹491 and ₹390.15, with a quarterly dividend payout of ₹3.59.

Godfrey Phillips share price too closed lower on December 1, 2025, slipping 1.22% to end at ₹2,838 at 3:30 pm IST. The stock opened at ₹2,855 and traded within an intraday range of ₹2,882.70 to ₹2,811.90. Its market capitalisation now stands at ₹44,270 crore, with a P/E ratio of 41.88 and a dividend yield of 1.30%. Godfrey Phillips holds a 52-week high of ₹3,947 and a low of ₹1,370.82. The company’s current quarterly dividend payout is ₹9.22.

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