The Hindu Business Line : Hike in excise duty on non-filter cigarettes opposed

Bangalore, April 11 Farmers from Karnataka have demanded a rollback of the ‘astronomical’ increase in excise duty on non-filter cigarettes announced in the Budget.

Representatives of the Federation of Cigarette Tobacco Growers Associations have protested against the hike in excise duty on non-filter cigarettes, ranging from 150-400 per cent, arguing that this will completely wipe out the non-filter cigarette segment which accounts for 30 per cent of the industry. The direct fallout will be a 30 per cent drop in tobacco crop production, impacting the livelihoods of 35 lakh people involved in tobacco farming.

“Such a significant reduction in the demand for cigarette tobaccos will destroy tobacco farmers,” said Mr L. Ananda, Honorary President of the Karnataka Tobacco Growers’ Forum, adding that several attempts to grow alternative crops in rain-fed areas has failed to yield the desired results. “Returns from alternative crops are too low to be viable.”

Ironical situation

Mr S.M. Anatharamu, President, Karnataka Tobacco Growers Forum, said at a time when the Government is claiming that farm incomes must be protected and farmers’ welfare prioritised, it was strange that it was simultaneously willing to risk the lives of tobacco growers.

“What is mystifying is that the Finance Minister has considered non-filter cigarettes to be equally toxic as filter cigarettes and imposed an astronomical excise duty while completely protecting bidis and gutkha, which are far more toxic than any other form of tobacco consumption. We have appealed to the Government to roll back the hike in excise duty to reasonable limits,” he said.

Tobacco farmers pleaded that the hike should be limited to the extent of inflationary trends.

More Stories on : Tobacco | Cigarettes | Excise and Customs | Budget | Karnataka

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