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Tobacco stocks face regulatory uncertainty with GST 2.0 implementation from February 1, 2026 and excise hikes, declining consumption due to health awareness, ethical concerns limiting ESG investor participation, litigation risks, illicit trade competition exacerbated by sharp price increases, advertising restrictions, and potential volume decline of 6-8% as per CRISIL forecast

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Also the Minnesota state updated its rates to $3.04 per pack plus a specific cigarette sales tax of 84 cents per pack which brings the total state-levied cost to nearly $3.88 before the base price of the tobacco is even added

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