Worried over the Union Budget proposing a hike in excise duty by 25 per cent for 65 mm cigarettes and on tobacco from Rs 60 to Rs 70 per kg, tobacco growers wanted the Centre to reconsider the proposal.
They urged Chief Minister N. Chandrababu Naidu to persuade the Centre as the proposal that come just ahead of e-auctioning of the produce beginning this month, would adversely affect market sentiments. Virginia Tobacco Growers Welfare Association president Chunchu Seshaiah said: “Tobacco is in negative list. But the Centre must provide a viable economic alternative to the growers before discouraging cultivation.” The growers sought reduction of VAT on cigarettes from the present 20 per cent to 14.5 per cent in the State budget, M Bangarababu, ex- Tobacco Board member said. Discriminatory taxation would lead to shift in consumption of ‘revenue-efficient’ legal cigarettes to illegal cigarettes, that accounted for 20 per cent of the total consumption , said ITA ex-president B. Kottaiah.