JAMMU, Aug 13: Association of Industries (AOI) Gangyal, Jammu appreciated the State Govt’s initiative to seek Govt of India interventions towards extension of NEIDS (North-East Industrial Development Scheme) fiscal incentives to equate J&K at par with North-Eastern States to attract fresh investments and provide fresh impetus towards the establishment and growth of industries in J&K.
Association of Industries (AOI) has claimed that entire existing micro/small industrial sector does not appear to be provided due consideration towards its survival and/or well being. The State Govt has yet to fully acknowledge the contributions of local ‘sons of the soil’ entrepreneurs who are directly providing employment opportunities to at least 3 lakh employees/workers mostly local in their micro/small industrial units.
A spokesman of the Association said that AOI repeatedly inviting the attention of the State Govt to restore the competitive edge of the local micro/small sector that existed in VAT regime by way of 100% VAT remission and exemption from Central Excise duty for sales up to Rs 1.5 crores contrary to the assurances by the State Govt at various levels have not been accorded due priority to restore competitive edge expeditiously by providing fiscal incentives through 5% budgetary support on sales within the State together with, 100% reimbursement of SGST paid by the units after utilization of ITC and 100% reimbursement of CGST paid by the units after utilization of ITC.
He said while State Govt should seek adequate/additional fiscal incentives for industrialization from Govt of India, it should also earmark adequate budgetary support to continue to restore competitive edge of local micro/small units. He urged the State Govt to acknowledge that a large chunk of the working capital resources of the local micro/small units have been diverted in meeting the tax obligations under GST regime which has not only started spreading sickness but infusing their closure. This trend should be addressed immediately by ensuring time bound reimbursement of due amount positively within 30 days of the amount deposited.
State Govt has reaffirmed its resolve to provide adequate marketing assistance by providing 20% price preference to local units. On the contrary, already established 40 years old system of procurement of various articles as required by State Govt Departments / Organizations through SICOP has kept at bay by these Departments / Organizations through their individual departmental orders, the spokesman added.