New Delhi: Thousands of small retailers, hawkers and pavement vendors gathered outside Talkatora Stadium on Monday to protest recent tax revisions on daily-use legal tobacco products, urging the government to reconsider what they termed “abrupt and unsustainable” measures.
The demonstration was organised by the Federation of Retailers Association of India (FRAI), which represents nearly 80 lakh micro, small and medium retailers through 54 associations nationwide. Protesters said the latest excise duty notification has triggered widespread anxiety among petty sellers who depend on high-volume, low-margin sales for survival.
Retailers pointed to the Ministry of Finance notification revising excise duties under the Chewing Tobacco, Jarda Scented Tobacco and Gutkha Packing Machines Rules, 2026. The revised structure prescribes duties ranging from Rs 2,050 to Rs 8,500 per 1,000 sticks, based on cigarette length, and is set to take effect from February 1, 2026, following the withdrawal of the compensation cess.
FRAI said the higher tax burden would raise retail prices, hurt demand and push consumers towards illicit products, further squeezing small sellers. The association called for an immediate review and structured consultations to protect livelihoods.