Workers making bidis urge govt to tax product at 28%

Labourers say factory owners taking advantage of them

June 01, 2017 01:27 am | Updated 01:27 am IST - New Delhi

On World No Tobacco Day, doctors, health activists and even the labourers working in bidi factories urged the government to tax bidis at 28% in order to save the lives of millions.

In a letter to the Union Finance Minister, bidi workers from Tamil Nadu and Uttar Pradesh exposed the bidi factory owners. The workers said that the owners have prevented adequate taxation on bidis in the name of hapless bidi workers who continue to work and live in abysmal conditions.

“We ourselves are the victims of the bidi industry owners, who take advantage of us and manipulate the weak enforcement and regulatory system in the bidi industry to make our lives more miserable. We do not want you to consider their request for lower taxation, benefits or subsidies that they are seeking in our name,” said 45-year-old Thangam, who has been rolling bidis in Tirunelveli district of Tamil Nadu since she was 10 years old.

‘Hit consumption’

Exposed to tobacco on a daily basis, the workers are at high risk of contracting tuberculosis and lung cancer among other respiratory diseases.

The bidi workers have pressed the government to intervene and alleviate their working condition and help them seek out alternative livelihood options.

Economist and health policy analyst Dr. Rijo John said: “Bidi consumption is price elastic and responds negatively to changes in prices. This is why a change in tax slabs could make a significant change in consumption patterns.”

“The government and the GST council should use taxation to discourage bidi consumption — a stated public policy goal. Settling for a GST rate less than 28% on bidis will result in a public health disaster in the country as bidis are the most commonly used form of tobacco here.”

Nearly 35%, or 27.5 crore, of adults in India consume tobacco in some form or the other, the Centre had said last April.

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