Vijayawada: The Federation of All India Farmer Associations (FAIFA) has expressed serious concern over the steep increase in excise duties on tobacco products, warning that it could adversely impact farmers’ livelihoods.
The Union Ministry of Finance recently issued a notification under the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026, imposing excise duties ranging from ₹2,050 to ₹8,500 per 1,000 sticks, depending on cigarette length, with effect from February 1.
FAIFA president Murali Babu said the farming community had relied on assurances given during the GST 2.0 announcement on September 4, 2025, that tobacco products would be taxed at 40 per cent of the retail sale price without increasing the overall tax burden. He noted that farmers had welcomed the rationalisation of GST rates and the removal of the 12 per cent slab, which had helped lower prices.
“We are shocked that the assurance has not been honoured. Instead, a sharp tax hike has been notified at the cost of farmers’ livelihoods,” he said.
