Zero Duty on Raw Tobacco Products Will Benefit AP Farmers: Naidu
As farmers and traders were losing money due to unclear policies, a decision was taken to reduce the duty on unbranded products to zero percent
Hyderabad: Andhra Pradesh Chief Minister Chandrababu Naidu has welcomed the decision taken by the Central government to reduce excise duty on raw tobacco products without any brand to zero.
The Centre’s decision will benefit the unbranded tobacco trade in the State. The Andhra Pradesh Government has taken into consideration the gazette issued by the Central Finance Ministry in this regard. The Finance Ministry has issued this gazette clarifying the duty regime applicable to unbleached tobacco.
In the past, there was no clear distinction between bulk tobacco sales and trade, which was difficult due to different provisions in the law. As farmers and traders were losing money due to such unclear policies, a decision was taken to reduce the duty on unbranded products to zero percent.
This gazette will reduce the difficulties caused by different classifications in the levy of excise duty. Naidu clarified that this decision taken by the Central government would benefit all tobacco farmers. He explained that in addition to getting a good price for farmers, it will also benefit traders and exporters.
The excise duty evasion will be significantly reduced due to clear guidelines and rules. He said that the Andhra Pradesh government supports this policy, which prevents tax benefits from being obtained through wrong means.
The Andhra Pradesh government has appealed to the central government and the Central Board of Indirect Taxes and Customs to implement this notification strictly across the country. These changes will be implemented from February 1. Zero percent excise duty will be applicable on unbranded tobacco products not packaged for retail sale under the tobacco HS 2401 code.
