Cigarette makers under fire over increased Cess: Angel Broking

Views of Angel Broking:

"The GST council has hiked the compensation cess on the filter and non filter Cigarettes with effect from Monday. The government has indicated that the GST rates announced earlier led to about Rs 5,000cr windfall gains to the cigarette companies but has unanimously reversed the same. This will impact the earnings of the cigarette companies as companies will either absorb the tax impact or see some drop in volumes if they hike the prices. We have a neutral rating on the stock."

Source : Equity Bulls

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