Excelsior Correspondent
JAMMU, Dec 27: Associ-ation of Industries, Gangyal today reminded the Finance Minister Haseeb Drabu on the assurance given to the industrialists of the State.
In an emergency meeting of the executive body of AoI held here today under the chairmanship of Rattan Dogra, its president, the members discussed the volatility of the situation arisen out of the SRO’s 519 and 521 dated December 21, 2017 whereby all the bonafide claims and expectations of the industrial sector have been set aside.
Dogra reminded Finance Minister towards his assurances to restore competitive edge of the local units by devising suitable mechanism in this regard.
The members mentioned that Government of India had cared to acknowledge acute industrial backward of the State to grant special fiscal incentives at par with North-Eastern States to attract fresh industrial investments in the State for creation of fresh employment opportunities. The Special Fiscal Package was alive either through fresh investment or through substantial expansion of the existing industrial units besides their residual period. Special Fiscal Package has been substantially diluted by the Government of India notification of October 5, 2017 which has deprived the local units of their promised fiscal incentives.
Central Government’s notification shall further result in State becoming unattractive for any fresh investment. AoI has already rejected the GoI notification and sought its withdrawal/modification when the representatives of local industries called on Union Finance Minister and Union Commerce & Industry Minister. Both the Union Ministers had assured to include the State in the Special Fiscal Package being devised for North Eastern States to mitigate the genuine concerns of the local industries which has numerous topographic disadvantages besides limited markets.
Association delegations in special deliberations with State Finance Minister, Commissioner/ Secretary Finance had specifically brought to their notice that local industrial units largely established by sons of the soil entrepreneurs are at most disadvantageous position having lost their entire competitive edge by withdrawal of VAT remission which was universally available to all local units irrespective of their size, location and product. Withdrawal of VAT remission has resulted in loss of their entire competitive edge. Besides their substantial resources have been diverted in compliance to various obligations under GST regime. These units having consumed entire chunk of their financial resources are on the verge of closure.
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