Beedi industry seeks lower GST on exports

Chennai: Indian beedis are being exported to various countries, said officials at a panel discussion and therefore on the need to reduce the Goods and Services Tax (GST) tax rate on the product from 28 per cent.

Industry officials said beedis are exported from India to the Gulf Countries, Singapore, West Indies, Netherlands, France and even to US. However, the panelists from different walks of lives pressed for reduction in the GST rate.

According to them, the 28 per cent tax rate has resulted in beedi production moving from organised to unorganised segment affecting the women workers and other marginalied sections as they are deprived of benefits like contribution to Provident Fund, paid leave, bonus, gratuity, insurance and others.

Speaking at a panel discussion Dr Ashwani Mahajan, National Convener, Swadeshi Jagran Manch said: "High GST on beedis is detrimental to both the industry and the workforce. The production of beedis in India provides employment to nearly 90 lakh to one crore people. A majority of the workers are women who live in Maoist dominated areas where no alternative job opportunities exist." He said it is critical to reduce the tax on beedi or else the industry will face the risk of cheap cigarette imports from China.