Importance of including bidis in GST regime.

-Unlike other tobacco products,bidis are exempted from both VAT and excise duty,as of now.

>Why?Because bidis are known as 'poor man's puff' and the status of it being a small-scale industry.

-Why should bidis be included in the tax-net?

>Smoking is one of the major reasons for various health hazards including cancer.

>The poor,rural folk often can't afford the huge health expenditure due to these health hazards.

>Thus,exempting bidis from the tax net is a form of discrimination against them.

>The economic cost of tobacco use in India is estimated to be Rs. 1,04,500 crores per year.

>Also,poor rural folk is often exempted from media campaigns against smoking,as they have lesser access to TV,cinema etc. than urban folks.

>Thus,discouraging bidi consumption by raising its tax is a must.

-Concerns:

>Livelihood of bidi workers would be affected.

-Remedy:

>Funds accrued from higher taxes on bidis could be used in their rehabilitation,like skilling 

them for alternative livelihoods.

Source:The Hindu