Beedi workers urge a reduction of GST on Beedi to 5% from 28%

The Karnataka Karavali Beedi Workers’ Union (KKBWU) and the Beedi Mazdoor Sangh (BMS) requested the Union government on Tuesday to decrease the Goods and Services Tax (GST) on beedi from 28% to 5% in order to support beedi production, which remains a source of income for many women in Coastal Karnataka.

Speaking to reporters in Mangaluru, KKBWU president Mohammed Rafi and BMS president K. Vishwanath Shetty said they recently met with Revenue Minister Krishna Byre Gowda and Chief Minister Siddaramaiah in Belagavi, who promised to take up the issue in the GST council.

Mr. Rafi stated that more than 3.5 crore workers work for Bharath, Ganesh, and 132 other beedi brands in Karnataka. A lot of these workers are women from Dakshina Kannada and Udupi districts who make a living by rolling beedis.

Beedi firms are struggling to stay in business in the state due to the current GST rate of 28%. The threat of beedi production closure in the state looms high, he said.

Mr. Rafi stated that the government should assist this industry, which is on the verge of closure.

“Please do not fasten the closure with the present 28% GST,” he requested.

Mr. Rafi suggested that the central and state governments encourage women beedi workers by lowering the GST to 5%.

Mr. Shetty stated that governments should view beedi as a cottage industry because it is rolled by women in their homes. Women are paid Rs.302 for rolling 1,000 beedis, a predetermined amount set by the State government and routinely reviewed.

Beedi workers earn an annual bonus of 8.33%, while their children receive frequent scholarships. There are 14 private hospitals in the region that provide ‘cashless’ treatment to workers and their families, he said.