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“We are averse to its
adoption. The proposed tax on services under the new tax structure shall be
detrimental to J&K as the State has been hit by militancy for the last 20 years.
The services taxes should be transferred only after the State is back on a
stable track,” said Nazir Ahmed Dar, President KCCI.
Dar said the service tax
would affect the J&K state which is dependent on tourism.
“Tourism is our main
industry and any service tax on this industry is not feasible unless the
financial status of the State improves. Tourism industry is likely to be hit by
this regime,” said Dar, adding “Instead government should invest in selling
Kashmir tourism across the globe.”
Dar further said that
service tax can’t be directly transferred to the JK State given its unique
constitution.
“Centre can’t transfer
the tax regime without taking the State government into confidence,” informed
Dar.
He said they are not
averse to such regimes so long it benefits the people.
“The taxes collected are
ultimately beneficial to the people but the regime should be people friendly,”
said Dar.
Dar further said that
government should also take traders and other stake holders on board if they
want to implement GST in the State.
“Any tax should be
Kashmir centric given the fact that this land has suffered on every front for
the last 20 years. The regime should be unique as the features of this land are
unique with regard to climate and topography,” added the KCCI President.
Notably, the Finance
Minister of Jammu and Kashmir had stressed on the introduction of this scheme in
the country while speaking at a meeting of Empowered Committee of State Finance
Ministers convened by New Delhi for implementation of the proposed tax regime.
However, he said that
such taxes are detrimental to the interests of the consuming states like J&K.
“The producing states
should desist from exporting taxes to other states which they do not levy on
their own,” Rather had said.
Rather had also strongly
pleaded that a comprehensive awareness campaign was needed to educate the trade
and industry and public at large about the benefits of GST regime.
The traders here also
stressed on the awareness campaign before launching any such initiative.
President Federation of
Commerce and industries Kashmir (FCIK), Muzaffar Khan, said that the traders and
the people are not aware about this regime.
“Traders are unaware
about its features and norms. They have to be taken into confidence before this
regime is introduced in J&K,” said Khan.
Khan said like VAT was
not accepted by many states, the GST can also be rejected if it was not
beneficial for the State.
“There shouldn’t be
blanket transfer of this regime unless its features are discussed and made
public,” said Khan.
President Kashmir Traders
and Manufactures Association Mohammad Yaseen Khan said the government makes
announcements without taking them into confidence.
“Centre talks with Indian
trade bodies without taking us into confidence. This is unacceptable unless its
benefits are spelled to the State industrial and other enterprises,” said Khan.
The finalisation of the
GST structure has already run into many delays due to differences between the
Centre and states on crucial issues such as the turnover threshold limit,
inclusion of state levies such as purchase tax and compensation for losses after
its introduction. As a result, the scheduled date of April 1, 2010, looks
improbable for the tax reform that aims to create a common market by replacing
indirect taxes such as excise duty, service tax and value-added tax with a
single levy.
Source:
Rising Kashmir, India, dated
30/01/2010
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