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By Kirti Srinivasan , 9 January 2026
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FRAI Calls for Review of Tobacco Excise Duty to Address Market Distortions

The Federation of Retailers Association of India (FRAI) has urged the government to reassess the current excise duty framework on tobacco products, citing growing concerns over market imbalance, revenue leakage, and the expansion of illicit trade. According to the association, steep and uneven taxation has strained legal supply chains while inadvertently encouraging unregulated alternatives. FRAI argues that a calibrated duty structure could protect government revenues, support legitimate businesses, and ensure better regulatory oversight.

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