Beedi workers demand reduction of GST from 28% to 5%

Karnataka beedi workers urge government to reduce GST from 28% to 5% to sustain livelihoods of women.

The Karnataka Karavali Beedi Workers’ Union (KKBWU) and Beedi Mazdoor Sangh (BMS) on Tuesday urged the Union government to reduce Goods and Services Tax (GST) on beedi from 28% to 5%, to sustain beedi production that continues to be source of livelihood for many women in Coastal Karnataka.

Talking to reporters in Mangaluru, KKBWU president Mohammed Rafi and BMS president K. Vishwanath Shetty said they met Revenue Minister Krishna Byre Gowda and Chief Minister Siddaramaiah in Belagavi recently, who assured of taking up the matter in the GST Council.

Mr. Rafi said there are over 3.5 crore workers working for Bharath, Ganesh, and 132 other beedi brands in Karnataka. A Majority of these workers are women from Dakshina Kannada and Udupi districts, who earn livelihood by rolling beedis. With the present GST of 28%, beedi firms are finding it difficult to sustain the business in the State. Threat of closure of beedi production in the State is looming large, he said.

Mr. Rafi said the government should support this industry, which is heading towards closure. “Please do not fasten the closure with the present 28% GST,” he said. The Central and the State governments should support women beedi workers by reducing the GST to 5%, Mr. Rafi said.

Mr. Shetty said the governments should consider beedi as cottage industry as they are rolled by women in houses. Women are being paid ₹302 for rolling 1,000 beedis, which is fixed by the State government and is revised regularly. The beedi workers earn bonus at a rate of 8.33% every year and their children get regular scholarships. There are 14 private hospitals in the region where the workers and their family members get ‘cashless’ treatment, he said.