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Speaking to Rising
Kashmir the economic advisor to J&K government, Jalil Ahmed Khan said, “We have
been participating in the discussions with the Empowered Committee that will
draft the new law to be legislated by the union parliament.”
So far we have no reservation about GST. In fact we are in favor of its early
roll out as it will definitely increase our scanty revenue resources, he said.
Asked about developed states like Andhra Pradesh, Gujarat, Punjab and mineral
rich Uttrakhand and Jharkhand opposing the proposed tax regime, Jalil said once
the draft legislation is formed we will give our opinion accordingly. But so far
we have no aversion to it, he said.
He said our traders should have no hesitation in introduction of GST in the
State as it is user friendly and simple to enforce. However, we will definitely
take on board our traders and industrialists before it is implemented in the
State.
According to the 13th finance commission recommendations, GST is to be rolled
out by September this year. Although it was slated to be introduced in April
this year but due to fresh differences between states and New Delhi, the new tax
regime has been put on hold till middle of the current fiscal.
The total revenue realization of the State is an appalling Rs 2200 crores. “A
GST regime of 14 to 16 per cent is expected to spur it to spiraling Rs 8000
crores a year,” estimates by the Federation Chamber of Industries Kashmir say.
According to analysts GST will give more relief to industry, trade and
agriculture. It will subsume of several Central and State taxes like excise,
service tax, VAT, entry tax and also phase out CST.
At the moment, central excise rates are 10 per cent, 8 per cent and 4 per cent,
the service tax rate is 12 per cent, state sales tax rates are 12.5 per cent and
4 per cent, while the central sales tax rate is 2 per cent.
The advanced states are opposing GST as it will lower their revenue and instead
increase the revenue of consuming states like ours, Shakil Qalander president
FCIK opined.
Source:
Rising Kashmir, India, dated
12/02/2010
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