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.
Tag: duty
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EU’s Plan to Tax Tobacco, Large Companies Continues
Last week, Euractiv reported reviewing a document where the European Commission was pushing for new taxes on tobacco, large corporations, electronics waste, and carbon emissions, to help fund its next long-term budget (2028–2034). This week, more details and context are emerging.
With the costs of most everything increasing, and the fact that the EU needs to begin repayment of €650 billion in Covid recovery loans starting in 2028, Euractiv said the EU needs new income sources beyond traditional gross national income-based contributions, which fund 56% of the current budget.
The reported plan includes a Tobacco Excise Duty Own Resource (TEDOR), expected to bring in major revenue while supporting public health goals. Previous reports suggest the Commission has floated a 139% tax hike on cigarettes. Other proposed revenue sources include a Corporate Resource for Europe (CORE) for firms with over €50 million turnover, and green taxes like carbon levies (ETS1, CBAM) and electronics waste contributions.
All 27 member states must approve the plan unanimously, making negotiations politically complex. However, the Commission views the next Multiannual Financial Framework (MFF) as a critical moment to secure the bloc’s economic, environmental, and defense goals.