Union Budget 2019-20: Special benefits for industry, handicrafts, tourism on Kashmir Inc wish list

First Union Budget by the relectedNarendraModi led Central Government for 2019-20, to be presented by Finance Minister NirmalaSitharaman in the Parliament on July 5, has rekindled hope among Kashmir-based trade bodies who are hoping for a Jammu and Kashmir centric announcements. 

The local industry was disappointed due to lack ofstate-centric announcements in the interim Budget presented by previous NDA-ledgovernment in February 2019. However, it is keen that special benefits andpackages be announced for upliftment of manufacturing sector of the Valleyunder ‘Make in India’ scheme of government in forthcoming Budget and alsoextend farmer-related benefits to the Valley.

   

“Horticulture which has borne the brunt of inclementweather must also be extended some relief and schemes must be introduced toenhance the cold-storage facilities in the Valley,” says president,Kashmir Valley Fruit Growers cum Dealers, Basheer Ahmad Bashir.  

Chairman, PHD Chamber of Commerce and Industry (Kashmir Chapter)Mushtaq Ahmad Chaya says encouraging measures should be announced in the unionBudget for providing boost to business in the Valley and across the state.Chaya said Kashmir tourism should be exempted from GST as suggested by aParliamentary Panel report earlier this year.

“There is a desperate need for a stimulus to trade andtourism in the Valley. We are hopeful that maximum sops will be announced innext week’s Union Budget,” Chaya said. Chaya said tourism sector which has beenprovided industrial status must be provided major concessions. “Less inflow oftourists to Kashmir in last few years has hit tourism stakeholders includinghoteliers.  We want a tax holiday andsame benefits as are given to new industries,” said Chaya.

The local industrialists and business community is alsoseeking speeding up of the work on the long-pending central projects. However,the expectation from the common people is that the slab of income tax should beincreased to Rs 4 lakh and a special package for raising state’s infrastructurebe announced.

Many Kashmir based businessmen said they “don’t  have any major expectation from the budget”but demanded an announcement regarding return of the power projects. “Ourfiscal autonomy was snatched by implementing GST here. I hope they realize thisand atleast our power projects are returned back,” said a trader.

Most business heads said the primary demand is thecontinuation of pre-GST incentives for the industries. They said extension ofcentral tax refund to all local industries must be announced in the Budget.”The 52 percent CGST refund provided by the central government recently tohandful of industry must be extended to all the stakeholders so that there isan end to disparity,” said another business representative. 

He said they were expecting lowering of interest rates onbusiness loans among other benefits. “There should be lowering of interestrates on business loans and increase in income tax slabs. We are also expectingconcrete steps so that we see overall growth,” he said.

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