CYIK demands tax reimbursement for SMEs

Saying that recently introduced SRO 519, 521by the state government to provide budgetary support for Jammu and Kashmir industries would cover only less than 300 industrial units, Consortium of Young Industrialists, Kashmir (CYIK) today demand that J&K Government should include small scale industries and non excisable units also under the scheme.
CYIK demands tax reimbursement for SMEs
Representational Pic

Saying that recently introduced SRO 519, 521by the state government to provide budgetary support for Jammu and Kashmir industries would cover only less than 300 industrial units, Consortium of Young Industrialists, Kashmir (CYIK) today demand that J&K Government should include small scale industries and non excisable units also under the scheme. 

The spokesperson of the CYIK in a written statement said that the SRO includes only the 300 industrial units registered under the erstwhile schemes of the Central Excise Nos. 56/2002-CE, 57/2002-CE & 01/2010-CE operating in the state and 'rejects' all small and medium scale industries in Jammu and Kashmir. 

CYIK appeals the Chief Minister Mehbooba Mufti that she must take note that manufacturing sector in Kashmir has to import maximum portion of their raw materials from outside state which tends to increase their manufacturing cost, so compared to other multinational who are getting tax benefits will overcome small scale industries with their lower cost of production," the spokesperson said, adding, "On a simpler note the locally manufactured products will become costlier and imported products will capture the entire market, and the overall impact would be on the entire industry. Locals who were already running their units with lots of difficulties were gaining a slow momentum but the sudden removal of tax benefits will definitely force them to shut down their units in Kashmir."

The implementation of GST with no tax benefits and budgetary support is certainly going to affect this sector and the employees associated with it, the spokesperson said. 

Small scale industries play a significant role in the overall growth of an economy. This industry is mainly specialized in the production of consumer commodities. SSIs generate huge employment due to the utilization of labour power for the production of goods. In under developed state like Jammu and Kashmir where unemployment is a major problem; these industries pave the way for employment of skilled and non-skilled persons.

Related Stories

No stories found.