Archive · 9 Jan 2026
FRAI Urges Reassessment of Tobacco Tax Hike
The Federation of Retailer Association of India (FRAI) is worried about a big increase in taxes on legal tobacco products.
The government has announced new rules that will make tobacco products more expensive starting February 1, 2026.
FRAI thinks this will hurt small shopkeepers who sell these products.
They are afraid that people might start buying cheaper, illegal tobacco instead.
FRAI wants the government to think again about this tax increase to help small businesses and keep people buying legal products.
FRAI expressed concerns over a steep increase in taxes on legal tobacco products.
The new excise duty ranges from ₹2,050 to ₹8,500 per 1,000 sticks, effective February 1, 2026.
Small retailers and hawkers depend on tobacco sales for their livelihoods.
FRAI warns that high taxes could push consumers towards illegal tobacco products.
The association urges the government to reconsider the tax hike to protect small retailers.
- Who
- Federation of Retailer Association of India (FRAI)
- What
- Urging the government to reassess the excise duty on tobacco products
- When
- January 8, 2026 (announcement), February 1, 2026 (effective date)
- Where
- India
- Why
- To safeguard the interests of small retailers and prevent illegal operators from taking over the market
- Organization
- Federation of Retailer Association of India (FRAI)
- Concern
- Steep increase in taxes on legal tobacco products
- Effective Date
- February 1, 2026
- Excise Duty Range
- ₹2,050-8,500 per 1,000 sticks
- Impacted Group
- Small retailers, hawkers, pavement sellers
- FRAI's Stance
- Urging for a rethink in taxation to protect small retailers
- Potential Risk
- Shift towards illicit and unregulated tobacco products
