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Government Considers Reducing GST on Tobacco Exports to Aid Farmers

The Indian government is considering lowering the GST rate on raw tobacco exports from 40% to 28%, with promises to explore other incentives for farmers' welfare.

Nilakshi Barman - - 1 min read
Government Considers Reducing GST on Tobacco Exports to Aid Farmers
The Centre has responded positively to four key proposals submitted for the benefit of tobacco farmers and exporters, says Tobacco Board Chairman Yashwanth Kumar Chidipothu. | Photo Credit: The Hindu

The Union Government has agreed to Andhra Pradesh's request to reduce the Goods and Services Tax (GST) on unmanufactured tobacco meant for exports from 40% to 28%.

This step aims to provide relief to exporters and offers hope to tobacco farmers amid the Flue-Cured Virginia (FCV) tobacco crisis in the state.

Officials also indicated they will consider other incentives to support farmers during ongoing market challenges.

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