HC directs govt to consider views of KCCI, others before taking decision on toll tax

High Court has directed the J&K Government to considerviews of Kashmir Chamber of Commerce and Industries (KCCI) and other recognisedValley-based trade bodies before taking any decision on toll tax.

The state administration has ordered constitution ofcommittee headed by the director industries, Jammu to examine the level of tolltax being levied on various products entering the state, the production ofthose products within the state, export of locally produced products from thestate and modifications, if any, as may be needed.

   

However, KCCI has prayed before the court that stateadministration has not given them due time to put forth their point of view.

 In this regard theHigh Court has asked the government that “in views of the submissions made bythe petitioner and nature of relief prayed for, it was futile to keep thispetition pending on board. Accordingly, this writ petition is taken up forfinal disposal at this stage and is disposed of by providing that beforefinalising the report in terms of government order No. 200-GAD of 2019 dated11.2.2019, the committee headed by the director industries, Jammu shall notifythe petitioner as also other recognised trade and industry bodies in Kashmir tohave their point of view in the matter. It would be appropriate, if the finaldecision is taken after considering views of the Chamber Of Commerce andIndustries Kashmir and also other recognised trade bodies as well,” reads theHigh Court order.

The petitioner apprehends that by the deadline fixed interms of the government order dated 11 February 2019 i.e. 01 March, 2019 thecommittee may submit its report and in case said report is submitted by thecommittee or decision taken by the government, it would seriously prejudice therights of the trade and industry operating in Kashmir, reads the courtdirection.

Senior vice president, KCCI, Nasir Khan said that the stateadministration seems to be in haste to take decision on abolition of toll taxwhich would prove a death nail to the industries and manufacturing sector inKashmir. “Due to prevailing situation we cannot attend any of the meeting heldby the committee, that is the reason why we had to approach court,” Khan saidadding that “They are against abolition of toll tax as it safeguards localindustry.”

He said the composition of the committee is such thatdirector industries Kashmir is a member while as the director industries Jammuis the chairperson, which raises question over composition of the committee.

 Interestingly as thegovernment has ordered constitution of a committee to examine imposition oftoll tax levied at Lakhanpur post, the industrialist bodies in both Kashmir andJammu divisions have opposed revocation of the entry tax arguing “it wouldprove fatal for local industry.”

Post-implementation of Goods and Services Tax (GST) whichsubsumed all other indirect and direct taxes, the state government which was ledby PDP-BJP government at the time of implementation of GST, kept in place thetoll tax in order to provide level playing field to the local industry in thestate with the big companies and MNCs, as it is already suffering due togeographical disadvantage.

According to a senior official, who does not want to benamed, the governor administration had a change of mind as a Jammu based tradebody wants toll tax to be removed but the industrialists from Kashmir as wellas Jammu are up in arms against any such decision.

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