FAIFA urges rollback of steep tobacco excise hike
image for illustrative purpose
New Delhi: The Federation of All India Farmer Associations (FAIFA) on Friday urged the government to roll back the notified excise rates on tobacco products and revise them to revenue-neutral rates, to disincentivise smuggling, and support domestic agriculture.
A stable taxation framework, FAIFA noted in a statement, is necessary to sustain farmer incomes, protect employment across the value chain, and align economic policy with long-term public health goals.
The Ministry of Finance notification ‘Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026’ has imposed an excise duty of Rs2,050-Rs8,500 per 1,000 sticks, depending on cigarette length, effective February 1.
