Indian Cigarette Maker ITC Slumps After India Raises Tobacco Tax

Shares of ITC Ltd., a top cigarette maker in India, plunged the most in nearly six years after India announced higher taxation on tobacco products.

Cigarettes will be charged an excise duty ranging from 2,050 to 8,500 rupees per 1,000 sticks from Feb. 1, according to a government notification late Wednesday. The higher charges imply a tax hike of over 30% if National Calamity Contingent Duty continues, Jefferies Financial Group Inc. said.