Farmers Urge Finance Minister to Rethink Tax on Tobacco

Farmers led by BJP MP D Purandeswari met Finance Minister Nirmala Sitharaman to discuss concerns over increased taxation on tobacco, fearing it could cause distress to families dependent on this crop and encourage illegal trade, impacting the economy and agriculture sector.

A delegation of farmers, led by BJP MP D Purandeswari, met with Finance Minister Nirmala Sitharaman on Thursday to voice concerns about the upcoming tax increase on tobacco. The meeting precedes the Budget 2026-27 discussions, aiming to safeguard the interests of those reliant on flue-cured Virginia (FCV) tobacco cultivation.

According to the Andhra Pradesh, Telangana & Karnataka FCV Tobacco Farmers Federation, Purandeswari highlighted potential distress for millions of farming families and warned that the tax hike could disrupt the regulated marketing system while fostering illegal trade. This could culminate in significant revenue losses for the government.

The farmers emphasized that with their crop ready and auctions around the corner, the increased tax could dampen domestic consumption, lower prices, and lead to unsold stock. As of February 1, new tax rates on cigarettes may hinder demand and erode buyer confidence at auctions.

(With inputs from agencies.)