GST implementation would make JK debt ridden: KEF

He said under GST the traders will have to pay taxes in advance before selling the products to consumers.

GKNN
Srinagar, Publish Date: May 20 2017 12:28AM | Updated Date: May 20 2017 12:28AM
GST implementation would make JK debt ridden: KEFRepresentational Pic

Opposing the implementation of Goods and Services Tax in the state, Kashmir Economic Forum (KEF) Friday said Jammu Kashmir is a consumer state which should not be bracketed at par with other states under the new tax regime.

In a statement, KEF said JK imports maximum of goods from outside the state and has minimal indigenous production.

It said GST implementation in the state would not only affect the business community but also dent the state’s economy.

KEF Chairman Showkat M Chowdhary said: “GST regime may be fruitful for other states which have large scale industries and factories “but it will only prove detrimental for the JK which is heavily dependent on imports from other states.” 

He said under GST the traders will have to pay taxes in advance before selling the products to consumers.

KEF Chairman questioned the Finance Minister Haseeb Drabu’s promise made to business community during pre-budget meetings.

“Drabu sahib categorically assured us that GST won’t be implemented under its present form in the State. We want to remind him of his promises,” said Showkat Chowdhary.

He said before implementing any tax regime, state government should take local stakeholders on board.

He also supported the popular concern of the people that GST implementation would erode financial autonomy of the State.

“The popular opinion among people in general and business community in particular is that GST implementation would only weaken state’s financial autonomy. We support such belief and we want state government to come clear on this issue before any such move on its implementation is made,” said Chowdhary.