A delegation of FCV tobacco farmers from Andhra Pradesh, Telangana, and Karnataka, led by Daggubati Purandeswari, Member of Parliament from Rajahmundry, on Thursday met Union Finance Minister Nirmala Sitharaman seeking review of tobacco tax hike.
Purandeswari, along with Yashwanth Kumar Chidipothu, Chairman, Tobacco Board, met the Union finance minister to express serious concern over the recent tax hike and its likely adverse impact on the regulated FCV tobacco ecosystem and farmers’ livelihoods.
The Member of Parliament from Rajahmundry initiated the discussion and explained that the sudden increase in taxation would create severe distress for lakhs of farming families dependent on FCV tobacco cultivation and disrupt the regulated marketing system.
Yashwanth Kumar Chidipothu, Chairman, Tobacco Board, explained in detail the repercussions of the tax hike on auctions, buyer participation, trade confidence, and the overall functioning of the regulated FCV tobacco.
Sitharaman listened carefully to all concerns and responded positively, assuring that the government will look into the issues, review the concerns, and consider the points raised by the farmers and stakeholders.
She also assured that the Government’s approach will be revenue-neutral, while taking into account the impact on farmers, trade and the regulated ecosystem, and further stated that the Government is not looking to generate additional revenue from the tobacco sector.
Purandeswari further assured the delegation that she would take up these matters at the appropriate forums and follow up closely with the Government.