The Swadeshi Jagran Manch (SJM), the economic arm of the RSS, has appealed to Finance Minister Nirmala Sitharaman to reconsider the Goods and Services Tax (GST) on plastic waste and the bidi industry ahead of the GST Council meeting. The SJM believes that the current high GST rates on bidi and plastic waste are negatively impacting employment within these sectors.
The SJM is specifically requesting that the GST on both plastic waste and the bidi industry be capped at 5 percent. In a letter addressed to the Finance Minister, the SJM argued that lowering the existing GST rates—18 percent on plastic waste and 28 percent on bidi production—would safeguard jobs in these areas.
Furthermore, the SJM highlights that reduced GST rates could contribute to the goals of the Swachh Bharat Abhiyan by mitigating environmental pollution. National Co-Convener of the SJM, Ashwini Mahajan, emphasized in his letter to Sitharaman that the 28 percent GST on bidi production has particularly affected employment in the sector. He noted that this high rate is creating hardship for workers in unregistered bidi manufacturing units, who are also excluded from various social security and welfare benefits provided by the central and state governments.
The SJM also calls for a reduction in the GST on plastic waste, currently taxed at 18 percent. Mahajan explained that this high rate diminishes the earnings of waste pickers. The SJM’s letter underscores the significance of the bidi industry as a key source of employment, particularly for women, across more than nine Indian states.
The SJM proposes that the bidi industry be included in the 5% GST bracket during the upcoming GST Council meeting. This measure, according to the SJM, is crucial to shield cottage industries, considering the significant employment generated by bidi manufacturers, tendu leaf collectors, and those involved in distribution and retail.
Echoing this call for relief, the SJM has also requested the Finance Minister to consider a similar reduction for the plastic waste sector. The SJM notes that millions of waste pickers collect and recycle plastic waste, supporting impoverished families while also contributing to India’s cleanliness. The SJM emphasizes that these waste pickers belong to the most economically vulnerable sections of society.
In his letter, Ashwini Mahajan also pointed out that the GST on plastic waste was initially 5 percent but was later increased to 18 percent, potentially reducing the incentive for waste pickers. This, in turn, could hinder the ‘Swachh Bharat’ initiative. The two-day GST Council meeting, chaired by Sitharaman and attended by ministers from all states, is scheduled to commence on Wednesday.