Zero Excise Duty on Unbranded Tobacco: A Boon for Andhra Pradesh Farmers

In a significant policy change, Andhra Pradesh Chief Minister N Chandrababu Naidu commended the Central government's decision to abolish excise duty on unbranded raw tobacco products. The move, welcomed by farmers and traders in the state, aims to simplify the taxation process.

The Union Finance Ministry's notification seeks to eliminate confusion between bulk unbranded and retail-branded tobacco, by imposing zero excise duty on bulk, unlabeled tobacco transactions. This decision, effective from February 1, attempts to curb evasion and improve market transparency.

Naidu emphasized that this policy shift would stabilize pricing for farmers and bolster exports, as it distinguishes unbranded sales from commercial products, which maintain an 18 percent duty. The revised guidelines aim to prevent misuse and ensure that genuine raw tobacco transactions enjoy tax relief.