NEW DELHI, Jan. 9 -- Thousands of small retailers, hawkers and pavement vendors protested across Delhi on Thursday against steep excise duty hikes on legal tobacco products, warning that the move threatens their livelihoods. Demonstrators, led by the Federation of Retailers Association of India (FRAI), staged sit-ins outside the Ministry of Finance, seeking a rollback of the revised tax rates.
The protest followed a recent finance ministry notification under the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines Rules, 2026, which imposes excise duties ranging from Rs 2,050 to Rs 8,500 per 1,000 sticks from February 1, after the withdrawal of the compensation cess.
Retailers said the sudden price increase would make legal products unaffordable, reduce demand and push consumers towards illicit alternatives. FRAI representatives said informal sellers, who operate on thin margins, would be hit hardest, affecting millions dependent on small retail trade for daily income.
Published by HT Digital Content Services with permission from Millennium Post.