Budget 2022: RSS-affiliate says more tax on bidi may push many to Naxalism

The economic arm of RSS urged the government to reduce taxes on 'bidis' to reduce burden on the workers whose livelihoods depend on the industry.

Amid speculations over raising tax on tobacco products in the upcoming Budget, the economic arm of Rashtriya Swayamsevak Sangh (RSS), Swadeshi Jagran Manch (SJM), has urged the government to cut tariff on ‘bidis', small hand-rolled cigarettes made of tobacco wrapped in 'tendu' leaves, often dubbed as a poor man's cigarette.

The government has already imposed a 28 per cent GST on bidis. (File Photo)

Addressing a virtual event, SJM co-convenor Ashwani Mahajan demanded that 'bidis' be also kept out of the purview of the proposed amendments to the Cigarette and Other Tobacco Products Act (COTPA) as a hike in tax on bidis will cost the livelihood of lakhs of workers engaged in the industry and may even push many of them to Naxalism.

"Bidi industry is believed to be providing employment and livelihood to 4-4.5 crore people in the country. Most of these workers are women from poor households and those who collect 'tendu' leaves used in production of the product," Mahajan was quoted as saying by news agency PTI.

The proposed changes, he said, will also significantly affect the bidi-making industry as obtaining licenses, permissions and registrations for manufacturing, selling and distributing any tobacco product will become mandatory.

"Any further hike in tax on bidi will take away livelihood from lakhs of people. It will also strengthen Naxalism," Mahajan said.

He added the government should instead create alternative employment and livelihood options for those dependent on the industry before bringing in measures to reduce bidi consumption and suggested a comparative scientific study to ascertain the impact of smoking 'bidis' and cigarettes.

The comments were made by the SJM speaker at a virtual event organised by the All India Bidi Industry Federation.

Finance minister Nirmala Sitharaman is all set to present the Union Budget for the fiscal 2022-23 on February 1.

In October last year, the government constituted a nine-member expert committee to develop a roadmap for tobacco tax policy and recommend immediate steps for making India compliant with the WHO's Framework Convention on Tobacco Control.

The panel comprised additional health secretary Vikas Sheel, as well as a representative from the WHO, among others.