India’s Union government withdrew the 18% central excise duty on unbranded, unmanufactured tobacco and tobacco refuse for retail sale, according to a gazette notification issued on Feb. 1, 2026, the same day the Union Budget for 2026–27 was presented. The move revokes a duty imposed in December 2025 and follows representations from tobacco farmers and industry stakeholders, including a delegation led by the Tobacco Board chairman, who warned the tax would burden growers and disrupt the market. The withdrawal does not affect existing excise duties on cigarettes, which remain unchanged and continue to be levied based on stick length.
