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flag Tobacco farmers urge tax review; Karnataka traders to boycott auctions over unclear rules.

flag FCV tobacco farmers from Andhra Pradesh, Telangana, and Karnataka met Finance Minister Nirmala Sitharaman on January 22, 2026, urging her to review an 18% tax on unmanufactured tobacco, warning it could harm livelihoods, reduce auction prices by 10%, and boost illicit trade. flag They cited risks to the regulated market and called for a revenue-neutral approach. flag The minister acknowledged concerns and said the government would review the issue, reaffirming no additional revenue was sought from the sector. flag Meanwhile, Karnataka traders plan to boycott auctions starting January 24, citing unclear tax rules and financial instability.

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