Chandrababu Naidu Requests Tax Relief for FCV Tobacco Farmers in Letters to Sitharaman and Goyal

The Goods and Services Tax (GST) on cigarettes has been increased from 28% to 40%, resulting in a significant rise in the overall tax burden on tobacco products. In conjunction with this tax change, the excise duty imposed on cigarettes now ranges from ₹2,050 to ₹8,500 per 1,000 cigarettes, depending on the type and category of the product.

This adjustment in taxation is part of an effort by the Indian government to discourage tobacco consumption due to its associated health risks. However, the move has raised concerns regarding its potential impact on the livelihoods of approximately 43,000 farmers who rely on tobacco cultivation.

The tobacco farming sector plays a crucial role in the economy of certain regions, providing employment and income to many families. Stakeholders, including farmers associations, are calling for measures to mitigate the adverse effects of the tax increase on their livelihoods.

This development highlights the ongoing tension between public health policy and economic interests within the agricultural sector, as the government seeks to balance the need for revenue generation with the need to support vulnerable communities.