SJM Urges Nirmala Sitharaman to Maintain GST Below 5 Percent for Plastic Waste and Beedi Industries

The Swadeshi Jagran Manch (SJM) has urged the Indian government to maintain a 5% GST rate on plastic waste and beedi production. This request was made in a letter to Finance Minister Nirmala Sitharaman before the upcoming GST Council meeting. The SJM, linked to the Rashtriya Swayamsevak Sangh (RSS), believes that lowering the current GST rates of 18% on plastic waste and 28% on beedi production will benefit employment and worker welfare in these sectors.

The GST Council is scheduled for a two-day meeting starting Wednesday, chaired by Sitharaman and attended by ministers from all states. The agenda includes discussing a proposal for next-generation GST reforms, which aims to simplify tax rates by consolidating them into two categories: 5% and 18%. This would involve moving products from the existing 12% and 28% slabs to lower rates.

Impact on Beedi Industry

Ashwani Mahajan, SJM's national co-convenor, highlighted in his letter that the highest GST rate of 28% on beedi production has negatively impacted employment, particularly in registered manufacturing units. Unregistered units face even more challenges as their workers miss out on social security or welfare benefits provided by both central and state governments.

Mahajan stated, "We humbly request you to keep beedis under the 5-per cent category to provide relief to this cottage industry which provides employment to a large number of beedi rollers, Tendu leave collectors and labourers engaged in distribution and retail." Historically, only minimal central excise duty was imposed on beedis, with many states not levying sales tax to protect worker interests.

Plastic Waste Sector Concerns

Regarding plastic waste, Mahajan argued that the current 18% GST reduces incentives for rag pickers who collect and recycle plastic waste. These individuals are among the lowest income earners in society. He noted that previously, only a 5% GST was applied before it was increased to 18%, affecting their livelihoods.

Mahajan added, "It is humbly requested to keep plastic waste under the 5-per cent category of GST," emphasizing the importance of supporting this sector for environmental benefits under Swachh Bharat objectives.

The proposed changes aim not only to support employment but also to contribute towards reducing environmental pollution. By adjusting GST rates, the government can potentially enhance both economic and ecological outcomes.

With inputs from PTI