*Non-existence to open floodgates for outside traders
Mohinder Verma
JAMMU, July 13: Though the traders and industrialists are divided over collection of Toll Tax at Lakhanpur even after implementation of Goods and Services Tax (GST) yet the Government is unlikely to abolish the same to avoid loss of hundreds of crores of rupees to the State exchequer and adverse impact on the J&K industries.
While the traders are demanding abolishment of toll being charged at Lakhanpur and other toll posts, the industrialists are of the stand that such a step would open floodgates for the outside traders to sell their products directly in the State and in that situation J&K industries would suffer immensely.
“After deeply analyzing all the aspects relating to Toll Tax at Lakhanpur, the Government has made up the mind to continue with the existing mechanism keeping in view negative impact of its abolishment on the State exchequer as well as industries”, official sources told EXCELSIOR.
They disclosed that Toll Tax being charged at Lakhanpur is contributing Rs 900 crore to the State exchequer per annum as such its abolishment would have serious financial implications for the State. “For a State like Jammu and Kashmir which doesn’t have enough resources, such a drain on the exchequer would be a major loss as such Government cannot afford to take a step which is detrimental to the State’s interests”, sources added.
“The another concern of the Government is that abolishment of Toll Tax at Lakhanpur will pave the way for outside traders to sell their products directly in J&K without any restriction as such the State industry will suffer immensely”, they further said, adding “during detailed study the Government has also come to the conclusion that automobile industry will be the major loser in case of abolishment of Toll Tax at Lakhanpur”.
When contacted, Lalit Mahajan, President of Bari Brahmana Industries Association (BBIA), while opposing the idea of abolishing Toll Tax at Lakhanpur said, “such a step would leave adverse impact on the industrialists of the State”, adding “once the Toll Tax is abolished, it will open the floodgates for outside traders who will sell their products including those being manufactured here in J&K and it will ruin our business activity”.
He admitted that automobile industry will suffer immensely as compared to other industries and said, “the automobile dealers outside the State will easily lure the J&K customers by offering some sops, which at present is not possible because of imposition of Toll Tax at Lakhanpur”.
According to the sources, the Government has already asked the traders, who are demanding abolishment of Toll Tax at Lakhanpur, to identify the items on which they are incurring losses so that some way-out is worked out but it would not be possible to completely abolish Toll Tax at gateway of J&K.
A senior officer of the Government said that existence of Toll Post at Lakhanpur was also imperative from other angles. “This post is playing vital role in checking entry of contraband and other banned products from the neighboring States. Moreover, this post has helped the Government in smuggling of products like willow-clefts from J&K to other States”, he added.
“Apart from generating revenue for the State this post is also helpful in many other ways as such existence of present mechanism is imperative”, he said, adding “a meager Rs 800 per ton being charged from the truckers carrying goods is not a big amount but the annual revenue matters most for the Government exchequer”.
According to the sources, in Uttar Pradesh the Government had abolished its posts following imposition of Value Added Tax but within a period of six months it realized that the step was detrimental to the interests of the State as such the posts were revived within short span of time.
Follow our WhatsApp channel