ITC slumps 4 per cent as government proposes ban on sale of loose cigarettes

Mumbai: Shares of tobacco companies, ITC and Godfrey Philips India, fell sharply by as much as 4 per cent today after the government proposed to amend the anti-smoking law and proposed radical changes, including ban on sale of loose cigarettes. ITC' scrip lost 3.92 per cent to Rs 346.10 on the BSE.

Similarly, shares of Godfrey Philips fell by 3.38 per cent and VST Industries was down 1.86 per cent. Brushing aside opposition, the government had yesterday moved to amend the anti-smoking law and proposed radical changes, including ban on sale of loose cigarettes and raising the minimum age of a person buying tobacco products to 21 years from existing 18. It has also proposed raising of fine to Rs 1000 from Rs 200 on smoking in public places as well as recommending removal of designated smoking zones in hotels and restaurants.

These are some of the major recommendations in the Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) (Amendment) Bill 2015, which were put out by the Health Ministry yesterday to seek suggestions from the public.