4 months ago
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Andhra Pradesh Chief Minister N. Chandrababu Naidu has welcomed the Union Government’s determination to trim excise work to zero connected unbranded earthy baccy products, describing it arsenic a important measurement that volition payment baccy farmers and tiny traders successful the State.
Mr. Naidu, connected Wednesday (February 4, 2026), said that the determination follows a gazette notification issued by the Union Ministry of Finance clarifying the excise work operation applicable to unprocessed baccy (HS Code 2401). As per the notification, excise work connected unbranded, unpacked earthy baccy sold astatine the retail level has been reduced to zero, helium said.
The Andhra Pradesh authorities has formally taken enactment of and supported this move.
The Chief Minister said the notification brings much-needed clarity, uniformity, and transparency successful baccy taxation. Earlier, ambiguity successful distinguishing betwixt bulk unbranded baccy and packaged retail products had led to ineligible and operational difficulties, adversely affecting farmers and traders. These issues, helium noted, often resulted successful losses owed to differing interpretations of taxation provisions.
Under the revised norms, earthy baccy sold by farmers successful bulk without branding oregon retail packaging volition pull zero excise work with effect from February 1, 2026. However, baccy products packed successful tiny retail packets oregon carrying institution marque names volition proceed to pull an 18 per cent excise duty.
Mr. Naidu said the caller argumentation volition easiness the earthy baccy proviso concatenation portion safeguarding authorities gross from commercialized and branded sales. Clear guidelines are besides expected to trim disputes during auditing and billing and curb misuse of taxation benefits.
The Chief Minister emphasized that the determination would guarantee amended prices for farmers, enactment tiny traders, and boost exports. Andhra Pradesh has urged the Union Government and the Central Board of Indirect Taxes and Customs (CBIC) to guarantee strict and azygous implementation of the notification crossed the country
