J&K industry at verge of closure: FoIJ

Excelsior Correspondent

JAMMU, Feb 22:  Federation of  Industries Jammu (FoIJ) has said that industry in the State has  reached at verge of closure due to delaying tactics of the Government.
In a meeting of the Federation held under the chairmanship of Rattan Dogra, entrepreneurs unanimously expressed their dismay and resentment over the delaying tactics now adopted by the State Government to deny publicly assured fiscal incentives to restore the competitive edge of almost all the micro/small industries largely promoted by local sons of the soil entrepreneurs that existed under the VAT regime.
Federation claimed that contrary to the myth floated by various Govt  functionaries and agencies, no new fiscal incentives have been provided under the GST regime neither the State Govt  intends to provide in near future as contained in Notifications SRO 519 and SRO 63. The entire working capital resources of the local micro/small entrepreneurs have been exhausted in meeting various obligations under GST regime and majority of these units are on the verge of closure, some of which unable to mobilize additional financial resources have already closed down.
Federation pointed out that State Govt adopted all means to convince industrial sector to welcome adoption and smooth transaction to GST regime and Chief Minister,  DyCM,  Finance Minister, Minister for Industries & Commerce publicly assured that local industries shall continue to be provided equivalent fiscal incentives which are imperative for their existence and survival. In various deliberations, the Finance Minister was categoric  enough to exceed the current amount of Rs 1700 crore for fiscal incentives for micro/small industrial units.
Dogra said industrial sector is single largest employment provider in the State and fiscal packages are provided for the upliftment and development of the region. Central Government had extended special fiscal package for the State which was alive on the date of the adoption of GST regime. In the revised fiscal package, Central Govt has drastically reduced and diluted its financial obligations and that too, only for the residual period of their entitlements of the existing units. Thus denying the protection of the fiscal incentives to the existing units through substantial expansions aimed at creation of fresh employment opportunities or extending any of the fiscal incentives for the upcoming new and units under pipeline.
The local entrepreneurs were banking upon the assurances of the State Govt that they shall be duly compensated by the State Govt to restore their competitive edge. The provisions of Central Package provided the fiscal incentives to the very few but big amongst the small sector (less than 300 of the total 7000 across the State) the fate of the remaining strength of the micro/small units were dependent upon the favourable consideration of the State Govt. The State Government has devised its notification entirely on Central Govt pattern continuing all the cumbersome procedures and formalities that are beyond the management and control of single handedly working entrepreneurs in micro/small sectors.
He said FoIJ had been advocating to atleast provide 100% refund of SGST on invoice value,  100% refund of CGST component of value addition of invoice value. It also suggested to provide 5% equivalent of invoice value of their sales within the State to provide fiscal incentives in addition to refund of value addition of SGST at par with VAT remission that existed prior to implementation of GST regime.
Prominent among others attending the meeting included Lalit Mahajan, Jatinder Aul,  Deepak Dhawan,  Vijay Aggarwal and  Ajay Langer.

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