Guntur: Narasaraopet MP and TDP Floor leader Lavu Srikrishnadevarayalu said shifting from GST compensation cess to central excise tax would strengthen revenues and ensure stability in taxation on tobacco products. Participating in the discussion in Lok Sabha on Wednesday, he said that GST reforms have reduced the tax burden on citizens and boosted domestic consumption. Expressing concern over the situation in Palnadu, Guntur and Prakasam districts, he said tobacco farmers are in financial distress. Rising debts, rejection of lots at auction centres, unsold stock piling up, declining demand in both domestic and international markets, and steep price falls have pushed farmers into crisis.

He criticised ITC Limited for failing to utilise CSR funds for farmer welfare, despite earning Rs 5,187 crore profit in the second quarter of financial year 2026. He said ITC has neglected crop diversification and agricultural stabilisation in tobacco-dependent regions. He appreciated the AP government for spending Rs 278 crore to support farmers and urged the Centre to provide immediate assistance through the Tobacco Board, ensuring mandatory and transparent CSR allocation to farmer regions.