The Federation of All India Farmer Associations (FAIFA) on Friday said the government’s move to levy additional excise duty on tobacco products will hurt farmers’ income and exacerbate smuggling in a market already grappling with illicit trade.
The finance ministry last month notified excise duties of Rs 2,050-8,500 per 1,000 cigarette sticks depending on length, effective February 1, under the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026.
FAIFA, representing growers across Andhra Pradesh, Telangana, Karnataka and Gujarat, said the duty increase contradicts the government’s assurances of revenue-neutral tax reform.
“We are shocked to see that the promise has not been kept, and instead a sharp increase in taxes has been notified, at the cost of farmers’ livelihoods,” FAIFA President Murali Babu said in a statement.
The farmers’ body warned that higher retail prices will reduce legal cigarette consumpti​The Federation of All India Farmer Associations (FAIFA) on Friday said the government’s move to levy additional excise duty on tobacco products will hurt farmers’ income and exacerbate smuggling in a market already grappling with illicit trade.
The finance ministry last month notified excise duties of Rs 2,050-8,500 per 1,000 cigarette sticks depending on length, effective February 1, under the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026.
FAIFA, representing growers across Andhra Pradesh, Telangana, Karnataka and Gujarat, said the duty increase contradicts the government’s assurances of revenue-neutral tax reform.
“We are shocked to see that the promise has not been kept, and instead a sharp increase in taxes has been notified, at the cost of farmers’ livelihoods,” FAIFA President Murali Babu said in a statement.
The farmers’ body warned that higher retail prices will reduce legal cigarette consumpti ​Latest News [ SOBAN NEWS: International and National ]
