New Delhi: The new rules of GST (Goods and Services Tax) in the country have surprised everyone. The government made Bidi cheaper, while cigarette prices have been huge increase. This decision not only surprised the common people, but has also created a stir in the tobacco industry. After all, why did the government do this? Is there a big reason behind this? Let’s understand this news in detail.

GST’s new game on bidi and cigarettes

The central government recently changed the tax rates on tobacco products at the GST Council meeting. Bidi, which is sold well in rural areas and small cities of the country, will now be cheaper than before. Tax on bidi has been reduced to 28% to 22%. On the other hand, tax on cigarettes has been increased to 36%, causing its prices to skyrocketed. This will directly affect the pockets of those who are fond of cigarettes.

What is the purpose of the government?

The government argues behind this decision that the production and sale of bidi is to small and medium level entrepreneurs. Millions of people work in the bidi industry, especially in rural areas. By reducing tax, the government wants to promote this industry and increase employment opportunities. But the purpose of increasing tax on cigarettes is to health. The government says that the increasing use of cigarettes is increasing cancer and other serious diseases. More tax will reduce cigarette consumption and people will be motivated to leave it.

Mixed reaction of public

There is different opinion among the public about this decision. People who drink bidi in rural areas are happy, because their pockets will now be less burdened. But there is resentment among cigarette smokers in cities. Ramesh Kumar, a cigarette smoke from Delhi, said, “The cigarette was already so expensive, what will you do if it is more expensive? The government is worried about health, but does not understand to make the bidi cheap.” At the same time, the workers associated with the bidi industry have praised the government’s move.

What will be the effect on tobacco industry?

Experts say that this decision will boost the beedi industry, but cigarette companies may suffer losses. Cigarette sales may decrease, as people will either leave cigarettes due to rising prices or turn to cheap beedi. This can affect the profits of large tobacco companies. Also, the government may also reduce the revenue revenue from cigarettes.

What is the way forward?

This new rule of GST has raised many questions. Will this step of the government be able to balance between health and economy? Is it right to make bidi cheaper, while it is equally harmful for health? Answers to these questions will be found in the coming time. Till then, this decision will remain the subject of discussion.