Centre positive on cutting GST on tobacco exports from 40% to 28%: Yashwanth Kumar
The Indian government is considering a request from Andhra Pradesh to reduce GST on unmanufactured tobacco exports from 40% to 28%. This move aims to alleviate financial pressure on exporters and support farmers amid a regional tobacco crisis.
Why it matters
Adjusting tax policies for agricultural exports is critical for maintaining the global competitiveness of Indian farmers and trade balance.
The Union Government has responded positively to Andhra Pradesh’s request to reduce the Goods and Services Tax (GST) on unmanufactured tobacco meant for exports from 40% to 28%, offering relief to exporters and raising hopes among tobacco farmers, amidst the FCV tobacco crisis in the State.
Acting on the directions of Chief Minister N. Chandrababu Naidu, Agriculture Minister K. Atchannaidu, along with other State Ministers and Members of Parliament, met Union Finance Minister Nirmala Sitharaman and Union Commerce and Industry Minister Piyush Goyal in New Delhi on Monday and Tuesday to press for measures aimed at strengthening the tobacco sector.
Tobacco Board Chairman Yashwanth Kumar Chidipothu, who was part of the delegation, told The Hindu on Wednesday that the Centre had responded positively to four key proposals submitted for the benefit of tobacco farmers and exporters across the country.
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