India's consumer goods index slides on report of special tax

Varun Beverages

03/12/2024 04:52

** India's Nifty FMCG index  .NIFTYFMCG  falls 0.74%, the only
major sub-index among 13 to decline on the day
** Ten of the 15 stocks in the index decline, with cigarette
maker ITC  ITC.NS  and Pepsi bottler Varun Beverages  VARB.NS 
being the top losers
    ** Indian government is likely to propose a new "special tax
rate" of 35% on tobacco products and aerated beverages, which
will be "over and above the existing four-slab structure of 5%,
12%, 18%, and 28%," CNBC TV18 reports, citing sources
    ** The government is also expected to increase tax rates on
items such as cosmetics, watches, shoes and handbags
    ** The consumer index is flat YTD; benchmark Nifty 50
 .NSEI  is up by about 12%

(Reporting by Anuran Sadhu in Bengaluru)
((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))