Retailers Urge Government Reconsideration of Steep Tobacco Tax Hike
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Retailers Urge Government Reconsideration of Steep Tobacco Tax Hike

The Federation of Retailer Association of India (FRAI) has urged the government to reconsider a recent steep increase in excise duty on legal tobacco products. FRAI, representing approximately 80 lakh small retailers, warns that the higher taxes, effective February 1, could harm livelihoods, reduce demand for legal products, and fuel a surge in illicit trade. The association clarified it does not oppose taxation but advocates for calibrated, revenue-neutral policies that support the informal retail sector.

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