Small retailers protest across Delhi over hike in taxes on legal tobacco products

Hundreds of small retailers, hawkers and pavement sellers from across Delhi poured on the streets on Friday in fear and anguish, protesting the sharp increase in taxes on legal tobacco products.

They held demonstrations across the capital and sat in a dharna outside the Ministry of Finance, pleading for an immediate rollback of the excessive tax hikes and a re-notification of sensible tax rates rooted in Indian reality that can protect demand and save livelihood.

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The protest was led by the Federation of Retailers Association of India (FRAI), which represents nearly 80 lakh micro, small and medium retailers nationwide with a membership of 54 Retail Associations from Northern, Southern, Eastern and Western parts of the country. With no alternative source of income to fall back on, retailers said the sudden price shock threatens the survival of their small businesses and the well-being of their families.

The FRAI clarified that while retailers are not opposed to taxation or public health objectives, they are seeking a calibrated, sensible taxation policy rooted in Indian reality, that avoids sudden price shocks and protects millions of self-employed sellers.

Speaking at the protest, Vinay Kumar, secretary, Federation of Retailers Association of India (FRAI), said, “Today we have come out because our lives are in danger. Sudden and big tax increases will make daily goods too costly for poor people and break the small shops that feed our families.”

As per a recent Ministry of Finance notification under the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines (Capacity Determination and Collection of Duty) Rules, 2026, an excise duty of Rs 2,050–8,500 per 1,000 sticks-depending on cigarette length-has been imposed, effective February 1.