Farmers Delegation Meets Finance Minister Sitharaman, Urges Against Sharp Tax Hike On Tobacco Ahead Of Budget 2026-27

New Delhi: Finance Minister Nirmala Sitharaman on Thursday met a delegation of farmers led by BJP MP D Purandeswari ahead of Budget 2026-27. "Delegation led by Smt @PurandeswariBJP, Hon'ble MP (LS), calls on Smt @nsitharaman," the Finance Ministry said in a tweet. Purandeswari told the Finance Minister that the sudden increase in taxation could create distress for lakhs of farming families dependent on flue-cured Virginia (FCV) tobacco cultivation and disrupt the regulated marketing mechanism, a statement issued by Andhra Pradesh, Telangana & Karnataka FCV Tobacco Farmers Federation said.

Purandeswari also cautioned that a sharp rise in taxes could lead to a decline in legal trade and an expansion of illicit trade, potentially resulting in revenue losses for the exchequer, it said. It is to be noted that effective February 1, there would be a sharp increase in the tax incidence on legal cigarettes, putting pressure on demand and affecting auctions, buyer participation and trade confidence, it said.

Farmers from Andhra Pradesh and Telangana informed the Finance Minister that their crop was ready and auctions were expected to begin next month, it said. They expressed apprehension that higher taxes could depress domestic consumption and lead to price declines and unsold inventories, it said.

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