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Sitharaman assures review of tobacco tax hike

Union Finance Minister Nirmala Sitharaman promised to review the 18% tax on unmanufactured tobacco after Andhra Pradesh farmers raised concerns over its impact on livelihoods.

Sitharaman assures review of tobacco tax hike
source; files

Amaravati, January 22, 2026: A delegation of Flue-Cured Virginia (FCV) tobacco farmers from Andhra Pradesh, led by Rajamahendravaram MP Daggubati Purandeswari, met Union Finance Minister Nirmala Sitharaman in New Delhi.

They highlighted fears that the new 18% tax on unmanufactured tobacco, effective February 1, could slash prices, disrupt auctions starting next month, and hurt lakhs of farming families in key areas like Guntur.

Sitharaman assured the group that the government would examine the concerns and their effects. She stressed the tax aims to stay revenue-neutral without adding burden to the sector and said she would flag it to the Group of Ministers involved.

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