Duty hike on tobacco products will hurt farmers, fuel smuggling: FAIFA
NEW DELHI, Jan 2 (PTI): 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.
