With National Democratic Alliance all set to form a new government at the Centre for second consecutive term after a resounding victory in Lok Sabha elections, Kashmir-based business bodies say they expect the Modi government to “live up to the promise” and exclude Kashmiri handicrafts and tourism services from Goods and Service Tax (GST).
At present both Kashmir handicrafts and tourism attract12-18 percent GST but a Parliamentary Panel Committee had recently expressedconcern over adverse effect of GST on Kashmir tourism and put forthrecommendations to do away with this taxing regime on it.
President, Kashmir Chamber of Commerce and Industry, SheikhAshiq said during its recent tenure the BJP-led central government’s textileminister has assured the artisans and trader fraternity that GST fromhandicrafts will be done away with. Ashiq said chamber will be taking up theissue of GST with the concerned ministry in the central government soon.
“Union Textile Ministry has recently assured us that it willtake up the issue of GST on Kashmir handicrafts with the GST council. TheKashmiri shawl and other handicrafts which continue to attract 12-15 percentGST need to have zero percent taxation and this has been our long pendingdemand,” he said.
Ashiq said levying GST on handicrafts was uncalled for as itis labour intensive. “We hope good sense prevails in the Centre so that dyingKashmiri handicrafts is revived,” he said.
Kashmir tourism traders also demand exemption from GST assuggested by the Parliamentary Panel report recently. “Trade and tourism inKashmir is in desperate need of a stimulus. There should be exemption of GST ontourism as suggested by the Parliamentary Panel report so that tourism andhospitality business, which has suffered a lot in the past witnesses a growth,”said Athar Yameen, general secretary, Travel Agents Society of Kashmir. Yameensaid tourism sector which has been provided industrial status must be providedmajor concessions. “Less inflow of tourists to Kashmir in last few years hashit tourism players including hoteliers. We want same benefits as are given to new industries,” said Yameen.
The local industrialists and business community is alsoseeking speeding up of the work on the long-pending central projects.
Zahoor Trumboo, former president, Chamber of CommerceIndustries Kashmir says GST council meeting that happens every month must becalled immediately by the new government to ensure that “lacunae in this taxingregime is addressed soon”.
“Tourism as well as handicrafts is in doldrums both due tolocal factors as well as imposition of the taxation. The most sensible movewill be to bring both handicrafts and tourism under zero tax regime so that wecan publicise them as tax free industry. In 2004, a soft loan scheme was kickstarted by the NDA government and now similarly they should provide cashassistance to tourism and handicrafts,” said Trumboo.
“This tourism season has already been hit by fragilesituation with hotels and houseboats seeing minimum occupancies. The high taxrate has made our tourism and handicrafts non-competitive as compared to restof India and foreign countries,” he said.