In a move to protect employment and promote environmental goals, the Swadeshi Jagran Manch (SJM), the economic arm of the RSS, has appealed to Finance Minister Nirmala Sitharaman to reduce the Goods and Services Tax (GST) on beedi and plastic waste. The request comes ahead of a GST Council meeting scheduled for September 3-4, where “next-generation reforms” are set to be discussed.
The SJM’s letter highlights the adverse effects of the current tax structure. For the beedi industry, which employs a large number of women across more than nine states, the SJM points out the “unfortunate” situation where a 28% GST is levied on the registered sector, while the unregistered sector evades taxes. This disparity, they argue, has dealt a significant blow to employment in the registered industry and deprives unregistered workers of social security benefits. The SJM has proposed a GST rate of 5% for beedis, urging the government to treat it as a cottage industry and provide relief to its workforce.
The organization has also called for a similar tax reduction on plastic waste. The SJM notes that the GST on plastic waste was recently increased from 5% to 18%. This higher tax, they say, discourages rag pickers, a population group at the “bottom-most category” of society, from collecting and recycling plastic waste. The SJM contends that this not only hurts the livelihood of these workers but also undermines the government’s “Swachh Bharat” initiative. By lowering the GST, the SJM believes the government can incentivize waste collection and help meet environmental objectives.
The SJM’s proposals are framed as a way to safeguard workers’ welfare, protect jobs, and support the Swachh Bharat mission. The GST Council is expected to consider these points as part of its discussions on a potential new two-rate GST structure of 5% and 18%.