The Indian government is considering various options to replace the existing compensation cess on tobacco products, a move that could have significant implications for ITC and other tobacco companies. This potential change in the tax structure might be announced in the upcoming Budget, signaling a possible shift in the fiscal approach towards the tobacco industry.

Potential Tax Structure Changes

The government's exploration of alternatives to the current compensation cess on tobacco products could lead to a new tax regime for the industry. While specific details of the proposed changes are yet to be revealed, this development is likely to be closely watched by stakeholders in the tobacco sector.

Implications for ITC and the Tobacco Industry

ITC, as one of India's leading tobacco companies, could face substantial impacts from any changes to the tax structure. The potential shift from the compensation cess to a new system may affect:

• Pricing strategies
• Profit margins
• Overall business operations

Other tobacco companies operating in India are also likely to be affected by these potential changes.

Timeline and Expectations

The government is considering announcing these changes in a future Budget. However, the exact nature and extent of the changes remain uncertain at this stage.

Industry Response

As the government studies various options, tobacco companies like ITC may need to reassess their long-term strategies and financial projections. The industry's response to these potential changes will be crucial in determining the future landscape of the tobacco market in India.

While the full impact of these potential changes is yet to be determined, it's clear that the government's decision could reshape the regulatory and fiscal environment for tobacco products in India. Stakeholders in the industry will need to stay informed and prepare for potential adjustments in the coming years.

ITC Limited , a prominent Indian conglomerate, has announced its decision to voluntarily delist its ordinary shares from the Calcutta Stock Exchange (CSE) effective November 20, 2025. This strategic move aims to consolidate the company's stock market presence on India's two major national exchanges.

Key Details of the Delisting

Implications and Rationale

The decision to delist from the Calcutta Stock Exchange while maintaining listings on the National Stock Exchange (NSE) and BSE Limited reflects ITC's strategy to streamline its stock market presence. This move may be aimed at:

1. Concentrating trading volumes on the two largest national exchanges
2. Potentially reducing compliance and administrative costs associated with multiple listings
3. Aligning with the broader trend of companies focusing on major national exchanges for enhanced liquidity and visibility

Official Communication

ITC has formally communicated this decision to all relevant stakeholders. The company received approval from the Calcutta Stock Exchange on November 19, 2025, confirming the delisting effective from November 20, 2025.

Impact on Shareholders

It's important to note that this delisting does not affect ITC's presence on the NSE and BSE Limited, where the majority of trading in ITC shares occurs. Shareholders can continue to trade ITC shares on these two major exchanges without any disruption.

Conclusion

ITC's decision to delist from the Calcutta Stock Exchange while maintaining its presence on the NSE and BSE Limited represents a strategic move to optimize its stock market listing. This action aligns with the company's broader strategy of streamlining operations and focusing on major national exchanges for enhanced trading efficiency and visibility.