Beedi Industry fallen due to GST

Hyderabad, July 2: The first day of the GST, a new taxation regime, which was implemented here on Saturday, The Beedi production was reduced by 40 percent. Under the GST, The Beedi industry has to cover the entire 51 percent tax (5 per cent on tobacco, 28 percent on beedis and 18 per cent on Tunika).

One of the major income sources in Telangana is beedi industry, which was greatly affecting by the GST. The Beedi manufacturing companies and owners are concerned against GST. The Beedi labor unions are conducting massive protests against the GST.

"We can not pay tax at this level.If it is still continued, The company seems to be closed," said Sagar, a leading Beedi company Owner.

In the Beedi industry, Mostly six lakhs of people have reduced in the past six years. The Bedi trade union leader Rajanna expressed concern that the whole industry is now collapsing at one time. Industry sources have analyzed the fact that the GST is currently undergoing an unprecedented damage to the Beedi Industry.

State Govt opposing GST on Beedi Industry:

The Telangana government has paid four lakh women workers at the rate of Rs.1000 per each woman under Beedi industry crisis.

The Chief Minister KCR has expressed deep displeasure over the Center entering the GST into Beedi industry.

He has submitted a memorandum letter to the Prime Minister Narendra Modi and the Union Finance Minister Arun Jaitley to exempt GST tax on beedi industry. In this way, the ministers KTR, Etela Rajender are supported the KCR's request to the Center.