J&K’s business community disappointed with Union Budget

Waiting with high hopes for a J&K specific budget announcement, business community of the state on Friday expressed its disappointment with the central government for ignoring the Himalayan state in the Union Budget.

The Union Budget 2019-20 presented by Finance Minister Piyush Goyal Friday disappointed the business community in Jammu and Kashmir as they accused the central government of “discriminating against and ignoring the Himalayan state”. The Union Budget 2019-20 presented by Finance Minister Piyush Goyal was keenly watched in the state as it is the last budget presented before general elections scheduled for May 2019.

   

J&K’s business community in its reaction to the budget said in this budget centre has “once again ignored the financially ailing state”.

“The budget as usual has nothing for Kashmir and the state has been ignored as such. We were hoping that after recent Parliamentary Panel report on Kashmir tourism, the budget will propose to the GST council that tourism and handicrafts be exempted from GST. The centre had time and again assured of this but there is no mention of it in the budget,” said president, Kashmir Chamber of Commerce and Industry, Sheikh Ashiq. 

Chairman, Kashmir Economic Alliance, Muhammad Yaseen Khan said the budget is “clear-cut message for some local mainstream parties which are again eyeing to forge alliance with BJP.” 

“The budget is a clear reflection of how the BJP government is ignoring Kashmir. When right wing forces wants to crush Kashmir economy and does not want us to grow, how can we have any expectation from the central government,” Khan said.

President, Jammu Chamber of Commerce and Industry, Rakesh Gupta told Greater Kashmir over phone that there is nothing J&K specific in the union budget. Gupta said there should have been some relaxation in GST regime wherein services are being taxed as high as 18 percent affecting every citizen. 

“Some interest subsidy subvention scheme should have been announced for the traders who are the major part of MSME sector and facing the worst because of implementation of GST especially in a state like Jammu & Kashmir,” Gupta said. 

Reacting to the announcement about the rebate of income tax upto Rs 5 lakh, Gupta said it is just a “honey trap” as it has been linked to a particular section in the Income Tax Act and “shall not be a big or a permanent relief”.

Chairman, PHD Chamber of Commerce and Industry (Kashmir Chapter) Mushtaq Chaya said while the budget has positively focused on overall rural development and salaried class but offers “nothing for Jammu and Kashmir” especially the tourism sector. “We were expecting a tax holiday for tourism sector after it received the industrial status but lack of any mention has disappointed us,” Chaya said.

In the case of Airports Authority of India (AAI), the budgetary allocation has been slashed to Rs 73.31 crore from Rs 149.93 crore in 2017-18 which as per tour and travel stakeholders in the Valley would be “counterproductive” for Srinagar “International” Airport which is going through a terminal expansion which is expected to witness completion in next 2-3 years.  

Chairman, Confederation of Indian Industries (CII), J&K State Council, Saddam Zaroo said it is an appeasing budget to middle-class and lower segments of the society while it also takes good care of small businesses and SMEs. 

“Asking Public Sector Undertakings to have compulsory purchase of 25 percent goods from MSME sector is a positive step. The 2 percent interest subvention of loan of Rs 1 crore for GST registered MSME is also a welcome move,” Zaroo said.

Leave a Reply

Your email address will not be published. Required fields are marked *

14 + 8 =