The budget 2018-19 presented by finance minister Haseeb Drabu has evoked mixed response from the business community. While some hailed the industry benefits to the tourism sector, others criticised the annual plan for being devoid of any relief to the “distressed” business community.
The Kashmir chamber of commerce and industry, apart from implementation of the goods and services tax, has appreciated the budget.
“The budget is encouraging to a large extent in certain sectors provided implementation is ensured on all the promises made,” a KCCI statement read.
The chamber has appreciated the decision of “professionalising the PSUs” with the removal of all politicians and bureaucrats from their boards to make them autonomous and independent of government control.
The KCCI also welcomed the inclusion of hotels and resorts in regard to power tariff at par with the industry, which was a long pending demand of the chamber.
In regard to subsidising 1/3rd interest of the businesses post-floods contrary to the demand for refund of full interest, KCCI has demanded that state government should ask Centre to refund the rest 2/3rd of the interest.
“It needs to be followed up vigorously or all these local businesses will become NPAs,” reads the statement.
The chamber has appreciated the power amnesty to all sectors of industry. The setting up of a Dry Port with the DPA of Dubai has also been welcomed.
“We also appreciate the education loan interest intervention,” said the KCCI statement.
The intervention proposed by the finance minister in respect to the silk industry, bat industry, walnut, national saffron mission, apple industry, CA store, packaging of apple has also been hailed by the business community as a welcome step.
The decision of creating carpet villages has also been hailed by the KCCI, however, they said that the same should be done for shawls and other handicrafts too.
“We also appreciate the inclusion of handicraft units under MSME for all industrial incentives which was our long pending demand besides marketing support for carpets,” said the statement.
“But unfortunately no venture capital fund has been provided for helping the local entrepreneur which was our demand,” said the statement.
The only sector where the business community has expressed dissatisfaction is the imposition of taxes.
“The finance minister has chosen to take advantage of Section 5 of the J&K Constitution to impose further taxes on us in different sectors like petroleum, real estate etc. Why in the first place the same section was not taken advantage of by having our own GST law,” the statement read.
J&K chapter of PHD Chamber has hailed the budget proposals, terming them “business friendly.”
Chairman, PHDCCI, J&K, Mushtaq Ahmad Chaya said that the “long pending demand of hoteliers has been heard as the government has decided to treat hotels and resorts at par with the industries as far as payment of power tariff is concerned. From April 1, they will now have to pay the same power tariff as is applicable to the industries.”
“It is a welcome decision for which we are thankful to the chief minister and the finance minister,” he said.
Chaya who is also president of J&K hoteliers’ club said that budget proposal of “CM’s Business Interest Relief Scheme” for all the RBI approved restructured accounts wherein the government will contribute one third of the total interest payment of all these borrowers is also a good decision which will help distressed business community.
“Budget has touched all the components of economy be it hoteliers, trade or houseboat owner. Almost all our suggestions have found mention in the budget for that we are thankful to the state government,” he concluded.
President, Chamber of Commerce and Industry Jammu, Rakesh Gupta conveyed “heartfelt” thanks to the Chief Minister Mehbooba Mufti and finance minister Drabu for the “historic reliefs announced to almost all sectors of business and society.”
In a statement, JCCI stated that incentives of SGST to industry, freight subsidy, industrial power tariff to hotels, sharing of portion of interest for restructured accounts, one time waiver of soft loans to houseboat owners, amnesty upto VAT period, power amnesty to industries and hotels, amnesty to transport sector in lieu of token tax, common facility centre for cricket bat industry, budgetary provision for improving horticulture sector/ setting up of CA Stores, Toll tax exemption of essential commodities, abolition of two toll posts, abolition of toll tax on non-commercial vehicles and abolition of toll on all fruits produced within the state are big relief to trade, industry and transport.
President Kashmir traders and manufacturers federation, Muhammad Yaseen Khan criticised the budget 2018-19.
“It is employee-appeasement budget, where there is nothing for taxpaying business community. No efforts are visible to reduce inflation nor have any measures been put in place to take out business community from distress,” he said.
“Budget proposal to waive off toll tax is a joke because after implementation of GST all toll taxes stand revoked. Further the government has done nothing to waive off cess on petroleum products,” he said, adding that there is no mention of power projects.
President, Associated Chamber of Commerce and Industries Kashmir, Zahoor Tramboo said budget proposals are “not so good, not so bad.”
“Apart from industrial benefits to tourism sector, there is nothing to brag about in this budget,” he said, adding that “meager allocation for handicraft sector is cruel joke.”
Chief spokesperson, Kashmir Traders Federation, Ajaz Shahdar said budget 2018-19 has disappointed all from business community to common people.
“There is nothing for the business community, the finance minister has resorted to jugglery of figures.”
Kashmir Economic Forum (KEF) hailed finance minister for presenting “trade-friendly” budget.
In a statement, KEF chairman Showkat M Chowdhary said that the budget is very encouraging and has accommodated all the sectors aiming at restructuring the financial loopholes in the state.
Chowdhary also hailed finance minister for considering the demands of tourism fraternity and allowing giving them industrial benefits with regard to power tariff at par with industrial units.
He also hailed budget for agriculture, horticulture and transporters.