Daijiworld Media Network - Mysuru

Mysuru, Aug 30: The century-old beedi industry, which sustains the livelihoods of lakhs of workers, is grappling with a severe crisis after the Union Government hiked the Goods and Services Tax (GST) on tobacco products, including beedis, from 18% to 28%.

In response, Narasimharaja constituency MLA Tanveer Sait has urged Chief Minister Siddaramaiah to press the Centre for a reduction in the GST rate on beedis from 28% to 18%.

The beedi industry, a key source of employment in states like Karnataka, West Bengal, Uttar Pradesh, Madhya Pradesh, Tamil Nadu, Andhra Pradesh, and Telangana, has already been under strain.

With nearly 90% of its workers being women, many of whom depend on beedi production as their primary income, the recent GST hike has exacerbated their financial woes. Sait, who also serves as the President of the Mysuru Beedi Mazdoor Sangh, highlighted the crisis in his letter to the Chief Minister.

“My late father, Aziz Sait, was a tireless champion of beedi workers' rights,” said Sait in his appeal. “He dedicated his life to their welfare and fought for the registration of beedi workers under the Minimum Wages Act, as well as for the implementation of several welfare schemes in healthcare, housing, and education.”

He added, “His work also led to the establishment of the Central Beedi Workers’ Hospital in Mysuru, the only one of its kind in the country.”

Sait also pointed to the significant impact of World Health Organisation (WHO) policies, which have already caused a 50% reduction in tobacco production. He warned that the GST increase has further plunged the industry into crisis, with many beedi units now on the brink of closure. This, he cautioned, could lead to mass unemployment, particularly among women workers.

“Without alternative employment opportunities, the livelihoods of beedi workers are under acute threat,” Sait stressed, urging the state government to take immediate action. He has called for the GST on beedis to be reduced to 18% and for the matter to be raised before the GST Council and the Union Government for urgent corrective measures.

Sait’s appeal highlights the urgent need to protect the livelihoods of lacs of beedi workers, whose jobs are now at risk due to the sharp increase in tax rates.