No Tax Hike on Bidis, Says Nirmala Sitharaman as Centre Highlights Welfare Push for Workers

No Tax Hike on Bidis, Says Nirmala Sitharaman as Centre Highlights Welfare Push for Workers

Finance Minister Nirmala Sitharaman clarified that the Centre has not increased taxes on bidis and detailed ongoing welfare schemes for bidi workers, including healthcare services, scholarships, and housing subsidies. Her statement aims to reassure workers and highlight the government’s continued support for the sector.

Finance Minister Nirmala Sitharaman on Tuesday firmly dismissed speculation of any increase in taxes on bidis, clarifying that the government has not altered the existing levy “by even a single paisa.” Addressing concerns raised across sections of the industry and its workforce, she outlined a detailed account of the ongoing welfare initiatives designed to support millions of bidi workers across India.

Sitharaman underscored that the welfare framework for bidi employees rests on healthcare support, educational assistance, and housing benefits administered through the Labour Welfare Organisation. According to the minister, workers and their families continue to receive medical services through a network of 10 hospitals and 279 dispensaries tailored to their specific needs. The programme also covers reimbursement for specialised treatments, including cancer care, tuberculosis management, cardiac ailments, and kidney transplant procedures.

Education assistance remains another central pillar of the welfare system, with scholarships extended to children of bidi workers from primary school through university-level courses. The annual financial aid ranges from ₹1,000 to ₹25,000, depending on the student’s grade and requirements, enabling families engaged in the bidi sector to secure better educational opportunities for the next generation.

The government has also strengthened housing support through the Revised Integrated Housing Scheme (RIHS) 2016, which provides a subsidy of ₹1.5 lakh for constructing permanent homes. Sitharaman noted that the scheme has been aligned with the Pradhan Mantri Awas Yojana to ensure broader coverage and streamlined delivery of benefits.

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Beyond these core programmes, she highlighted that bidi workers also benefit from wider national schemes such as the Public Distribution System, the Deendayal Antyodaya Yojana, PM SVANidhi, and the Pradhan Mantri Kaushal Vikas Yojana. Together, these initiatives aim to provide social security, income stability, and skill development opportunities for workers in one of the country’s most vulnerable informal sectors.

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With the clarification that no tax hike is in consideration, the government has sought to ease anxieties within the bidi industry while reiterating its commitment to worker-centric welfare. The minister’s remarks signal a continued policy focus on protecting livelihoods in traditional labour-intensive industries amid evolving economic and regulatory landscapes.

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