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Economy - Reports

8 Jan '26|2:11 PM

FRAI Urges Govt to Reconsider Sharp Tax Hike on Legal Tobacco

Federation of Retailer Association of India (FRAI) expressed serious concerns over a steep increase in taxes of legal tobacco products, requesting a consideration to lower the taxes to ensure interest of small retailers is looked into while also preventing illegal operators from taking over the market. The demand from the association comes after the Finance Ministry notification of the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026 that have imposed an excise duty of Rs 2,050-8,500 per 1,000 sticks, depending on cigarette length, effective February 1. T

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