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Tobacco Institute of India requests government to review and reconsider latest hike in taxes on Tobacco
(05-Jan-2026, 10:45 Hours IST)  
The Tobacco Institute of India (TII) has said in a latest update that it is surprised by the unprecedented increase in duty announced on Wednesday on tobacco and related products. It noted that given the statements made by the government on more than one occasion, that the overall impact of the transition of taxes will be revenue neutral. Such a massive increase will cause immense hardship and loss to millions of farmers, MSMEs, retailers and local value chains nurtured by the Industry, besides providing a huge fillip to illicit industry and damaging national enterprises. TII requests the government to review the computations behind this extremely severe tax increase and reconsider the enormous hike given the huge implications. The Finance Ministry has amended the Central Excise Act, imposing an excise duty of Rs 2,050-Rs 8,500 per 1,000 sticks depending on the length of cigarettes. This will be in addition to a 40% GST.

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