The Swadeshi Jagran Manch (SJM), an economic affiliate of the Rashtriya Swayamsevak Sangh (RSS), has written to Finance Minister Nirmala Sitharaman, urging a review of the Goods and Services Tax (GST) levied on the bidi industry and plastic waste. The SJM contends that the current GST rates are detrimental to employment within these sectors.
The SJM has specifically requested that the GST on both plastic waste and the bidi industry be fixed at 5 percent. In a letter to Finance Minister Nirmala Sitharaman, ahead of the GST Council meeting, the SJM argued that lowering the existing GST of 18% on plastic waste and 28% on bidi production will help to preserve employment in both sectors.
The organization further stated that reduced GST rates in these sectors could also aid in reducing environmental pollution, aligning with the goals of the Swachh Bharat Abhiyan. Ashwini Mahajan, National Co-Convener of the SJM, in his letter to Sitharaman, noted that the high GST of 28% on bidi production has negatively impacted employment within the sector, creating hardship for workers in unregistered bidi manufacturing units, who are deprived of government welfare benefits.
Regarding plastic waste, the SJM is advocating for a reduction in the current 18 percent GST. Mahajan pointed out that this tax burden reduces the compensation received by waste pickers for their efforts. The SJM’s letter highlights that the bidi industry serves as a vital source of employment, particularly for women, across several Indian states.
At the upcoming GST Council meeting, the SJM is advocating for the bidi industry to be placed under the 5% GST bracket. This, they argue, is crucial to protect cottage industries, recognizing the employment generated by bidi manufacturers, tendu leaf collectors, and those working in distribution and retail.
Similarly, the SJM has requested relief for the plastic waste sector. They emphasized that millions of waste pickers across the country collect and recycle plastic waste, supporting impoverished families and contributing to India’s cleanliness initiatives. The SJM emphasizes that these waste pickers belong to the most economically vulnerable sections of society.
Ashwini Mahajan, in his letter, highlighted that the GST on plastic waste, which was previously 5%, was later increased to 18%, potentially discouraging waste pickers. This could undermine Prime Minister Narendra Modi’s ‘Swachh Bharat’ initiative. The GST Council’s two-day meeting, chaired by Sitharaman and attended by state ministers, is scheduled to begin on Wednesday.
