Reacting to former chief minister Omar Abdullah’s statement that NC will change GST law if voted to power in the state, Kashmir Chamber of Commerce and Industry (KCCI) on Wednesday said the good and services tax has negative impact on the J&K economy and there is need for concrete and doable alternatives to salvage the businesses.
“Theimpact (of GST) has crippled our handicrafts, tourism and industry sectors. Therefunds to industries are lingered on for months together on one pretext or theother,” said senior vice president of KCCI, Nasir Hamid Khan, in a statement.
He said KCCI, alongwith amajority of other stakeholders, had opposed the implementation of the lawprimarily on the ground that is would dilute the unique constitutional statusand autonomy Jammu and Kashmir enjoyed.
Vicepresident of National Conference in an interview with Greater Kashmir publishedon Wednesday has said that if his party is voted to power in the next assemblyelection, it would explore “all options” to bring the central Goods and ServiceTax (GST) Act “in line with the autonomous character” of Jammu and Kashmir.
Khansaid the position taken by the KCCI and other business bodies has beenvalidated by the Parliamentary Standing Committee on Transport, Tourism andCulture in a report in 2018. “It had raised red flags over the implementationof GST on tourist related activities. It has recommended that it must bereconsidered and done in a cautious manner in order to ensure that the delicatestate of tourism sector should not be adversely affected,” Khan said.
The report, according thestatement, had further underlined the sensitive nature of the state and statedthat the implementation of GST on tourism would have ‘manifold effects, mostlynegative, on the economy in the Region’.
KCCIsaid the government on its part needsto sort out connectivity, infrastructural and taxation issues which are proving to be the biggest impediments in the J&K’s economic growth.
“Thestress on various sectors of the economy, especially tourism, handicrafts andindustry, has reached a critical breaking point. There is immediate need forall stakeholders to put in serious and effective efforts in a salvageoperation,” Khan said.