Overview
- The gazette clarifies that unbranded, unpacked raw tobacco under HS Code 2401 carries a 0% excise duty from February 1, 2026.
- Branded or small retail‑packed tobacco products continue to attract an 18% excise duty.
- Chief Minister N. Chandrababu Naidu said the move will improve farmgate prices, support small traders, and bolster export prospects.
- Officials say the clarification resolves past classification confusion between bulk leaf and retail products, reducing billing and audit disputes.
- The state government urged the Union government and CBIC to ensure strict, uniform implementation nationwide to prevent misuse and protect revenue.