The article details recent adjustments to India’s Goods and Services Tax (GST) rates concerning bidi-related products. It outlines a general GST framework comprising a 5 percent ‘merit’ rate for essential goods, an 18 percent ‘standard’ rate for most items, and a 40 percent ‘de-merit’ rate applicable to specific goods and services. The GST Council implemented rate reductions for tendu leaves and katha, key components in bidi manufacturing, to 5 percent. Additionally, the GST rate for bidis was decreased from 28 percent to 18 percent, placing them within the ‘standard’ category.
Demographic analysis indicates higher bidi consumption among illiterate populations (14 percent) and a notable difference between rural (9.3 percent) and urban (4.7 percent) areas. The article also highlights health conditions reported among bidi workers, including respiratory diseases affecting up to 52.5 percent (such as tuberculosis and asthma), musculoskeletal disorders impacting up to 87 percent, hypertension observed in 16.5–65.8 percent, and eye problems affecting up to 77 percent.
Currently, the tax burden on bidis stands at approximately 22 percent, significantly lower than the 58 percent levied on other tobacco products like cigarettes. Preliminary estimates suggest that these recent GST revisions will further reduce the bidi tax burden from 22 percent to around 16 percent, a decline of 6 percentage points.
Source: indianexpress.com