Swadeshi Jagran Manch recommends lower GST for beedi and plastic waste

Swadeshi Jagran Manch (SJM), the economic wing of Rashtriya Swayamsewak Sangh (RSS), on Tuesday (September 2, 2025) requested Finance Minister Nirmala Sitharaman to reconsider the Goods and Services Tax (GST) on beedi, and plastic, as the higher tax will impact the employment of the people involved in these trades.

The proposals will help in protecting and promoting employment, improving workers’ welfare and achieving the objective of reducing environmental pollution under Swachh Bharat, the SJM said.

The GST council will have its meeting on September 3-4 to discuss the next-generation reforms under the GST.

In a letter to the Finance Minister, the SJM said that beedi is a major source of employment, especially for women in more than nine States of India.

Terming it as ‘unfortunate’, the SJM said that in the case of the registered beedi industry, a GST of 28% is imposed while the unregistered sector does not pay any GST.

“After the introduction of the GST, beedis attracted GST at 28%, i.e. the highest GST rate, as beedis were categorised as demerit goods. This caused a blow to employment in the beedi sector, especially in the registered sector. However, the unregistered manufacturing units evade paying taxes, but workers in such units in the unregistered beedi industry are deprived of many social security or welfare benefits, provided by the governments, both at Central and State level,” it said.

It added that a very small amount of Central excise duty was levied on beedis in the past, while many State governments did not levy a sales tax, keeping the interests of beedi workers in mind.

“Since the GST Council is meeting to finalise two rates for GST 5% and 18%, we humbly request you to keep beedis under 5% category to provide relief to this cottage industry with huge amount of employment to beedi rollers, tendu leaves collectors and labour engaged in distribution and retail,” the SJM said.

Seeking similar relief for plastic waste, the SJM said that millions of small rag pickers are engaged in the collection of plastic waste from different sources and then the same is segregated and recycled.

“These rag pickers belong to the bottom-most category of our population in terms of income, consumption and living standards. Earlier, plastic waste was being taxed at 5% GST, which was later increased to 18%. This has the potential to reduce the incentive for rag picking by these poor workers. This is also adversely impacting the objective of ‘Swachh Bharat’ as enshrined by Prime Minister Narendra Modi,” the SJM added.