Sambalpur: Even as the Centre claims the GST has become successful a year after its implementation, it has severely impacted the bidi industry in this district and rendered over 2 lakh workers jobless, according to a report.
The Centre has levied 28 per cent GST on kendu leaves and 18 per cent on bidis which has directly hit the working of a bidi manufacturing company in this town and its surrounding areas.
Also, 11 bidi manufacturing companies in this district have been closed down.
While the business has dwindled with the implementation of GST, the exploitation of labourers has also increased. Huge stocks of bidi and kendu leaves are lying unsold in godowns and in kendu leaves depot. As a result, the state government is losing revenue to the tune of crores of rupees.
The kendu leaf workers are also being deprived of their earnings as well as their dues while some unscrupulous traders are getting benefited by taking the route of smuggling.
The closed bidi firms are: Balaji Traders at Old Cinema Road in Rengali of Sambalpur; Bajrangbali Bidi Works at Bisipali in Redhakhole; LIT Natural Products at Hirakud; Mahesh Bidi Works at Tanlapada in Sambalpur; Raoji Bhai Lalu Bhai Patel and Co in Redhakhole; SS Surya Bidi Works; Dayalal Meghajee and Co; Mrunalini Bidi Corporation Ltd in Rengali; Rajendra Bhai Daya Bhai Patel Tobaco in Ghanatamal; Sk Traders in Rengali; and Bidarbh Tobaco Pvt Ltd in Rengali.
It is alleged that the implementation of GST is the reason behind the closure of these once flourishing bidi companies. They are alleged to be incurring heavy loss as their stocks
remain unsold due to the high per cent of tax on their product, a proprietor who recently closed down his company said on condition of anonymity.
He said he was carrying on his business even after the government imposed restrictions on consumption of tobacco products and launched awareness programmes. However, he started incurring loss after the new tax was implemented. He soon found it difficult to pay his workers and finally went bankrupt, the businessman said.
Moreover, the implementation of GST has given rise to smuggling of bidis as some unscrupulous companies have started smuggling kendu leaves and manufacturing bidis secretly to escape the GST net. They are also selling their product clandestinely without packaging it with the company logo or emblem. These bidis are sold in various rural and urban pockets of the state. They are also transported to other states in a similar manner.
Bijay Kumar Mohanty, president Odisha Kendu Leaves Workers’ Association, confirmed the development and demanded the state and the Centre to spare some thought for kendu leaves and bidi workers.
PNN
