Centre cuts GST on beedis from 28% to 18%; health experts, activists raise alarm

Hyderabad: The Goods and Services Tax (GST) Council’s decision to reduce the GST on beedis from 28 per cent to 18 per cent has drawn sharp reactions from public health experts and anti-tobacco campaigners.

In contrast, the GST on cigarettes, cigars and other tobacco products has been raised from 28 per cent to 40 per cent.

Bidi use in India

According to the Global Adult Tobacco Survey (GATS) 2016–17, around 71 million adults in India smoked beedis, accounting for 7.7 per cent of the country’s adult population. Cigarette smokers, by comparison, made up 4.5 per cent.

Doctors point out that beedis, often perceived as a cheaper alternative to cigarettes, are significantly more harmful.

“Scientific evidence shows that beedi smoke delivers three times more carbon monoxide and nicotine, and five times more tar than cigarettes,” said Dr Anish Kumar, a thoracic surgeon speaking to NewsMeter.

‘A step backwards’

Health experts expressed concern that the move could undo years of progress in tobacco control.

“Taxes are one of the most effective tools to reduce tobacco use. Lowering the GST on beedis will make them more affordable, particularly for low-income groups who are already the largest consumers,” said Dr Pankaj Chaturvedi, a senior oncologist.

Economic vs. public health debate

Industry representatives have long argued that higher taxes on beedis affect rural employment, as millions are engaged in the beedi rolling sector. However, health experts say the economic argument overlooks the massive health costs linked to bidi consumption.

“The government spends thousands of crores every year on treating tobacco-related illnesses. Any short-term economic benefit of protecting the beedi industry pales in comparison to the long-term burden on public health,” said Dr Kumar.

Possible consequences

Public health activists warn that reducing GST could lead to increased consumption among young and economically vulnerable populations.

“Making bidis cheaper risks increasing initiation rates among youth, undoing years of anti-tobacco campaigns,” said Monika Arora, health promotion activist.

Call for reconsideration

Activists are urging the GST Council to review its decision.

“If the government is serious about reducing the tobacco epidemic, taxation must be uniformly high across all tobacco products, including beedis,” said Dr Kumar.