For GST, include bidi in demerit goods: Cancer grid

New Delhi, April 22

The National Cancer Grid (NCG) — a network of 108 cancer centres, research institutes, patient groups and professional societies — today wrote to Prime Minister Narendra Modi seeking the placement of bidis in the demerit goods category under the Goods and Services Tax (GST) regime.

The letter comes in the wake of an upcoming meeting the PM is expected to chair to review the fitment of items in tax slabs before these go to the GST Council for a final approval. There is widespread concern among health activists about bidis being treated lightly in the tax regime and not being taxed at rates similar to other tobacco products.

“The GST Council has decided to place tobacco in the demerit goods category, a category with the highest tax and additional cess. However, we are worried about the possibilities that bidis may be exempted from the category. On behalf of the NCG, we propose a uniform tax and cess for all tobacco products, including bidis. Classifying tobacco products in various tax-rate slabs will be a distortion and will promote the use of products such as bidis which alone account for six lakh deaths annually,” said the letter to the PM, signed by Dr RA Badwe, on behalf of all NCG directors.

The grid’s reservation on possible exemption of bidis from the highest tax rate is vital as the NCG is funded by the government through the Department of Atomic Energy. Its mandate is to form uniform standards for patient care, for prevention, diagnosis and treatment of cancer and facilitating research. — TNS