Excelsior Correspondent
JAMMU, Jan 6: A delegation of Bari Brahmana Industries Association led by Lalit Mahajan, president, BBIA presented a memorandum to Dr Jitendra Singh, Union Minister of State in Prime Minister’s Office and projected the issues of the industrialists from the J&K UT.
Mahajan who was accompanied by Satish Kaul, president JK Pharma Association, SK Bansal, Rahul Bansal, Sheikh Ashique president Chamber of Commerce & Industry, Kashmir, Shahid Kawali, while endorsing the decision taken by Govt of India regarding “One Nation One Tax” by removing Toll Tax in J&K from January 1, 2020, drew the attention of the Minister that after abolishing the Toll Tax, it is need of the hour to provide additional Fiscal Incentive to existing industry which includes reimbursement of 5% as Financial support to industrial sector on the Sale value of goods sold within of Union Territory of J&K to existing Industry, reimbursement of 100% road freight to Industrial sector on raw materials/ finished goods within the State/outside the State by road.
They also stressed for issuance of notification in respect of duty draw back incentive under export obligation with retrospective effect, continuation of existing State/Central package of Incentives for the existing Industry enabling the existing Industrial sector to compete with stiff competition from outside J&K due to abolition of Toll Tax in time bound manner.
While elaborating on the points, Mahajan said at present under D.I.P.P incentive of 2017, there is a capping of incentives to the tune of 100% of Investment on plant and machinery. This should be enhanced to 350 % of the investment on plant and machinery for the entire period of package of incentive. Moreover, the `Sunset Clause’ to avail the benefits up to 31-3-2020 only, should be extended for next 15 years to attract long term Investment in J&K UT.
He said there is no incentive for road transport of finished products / raw material under the current D.I.P.P package. This should be modified keeping in mind the non-availability of other mode of transportation like waterways etc. Moreover, the present transport incentive on the finished products is beyond 1000 Kms at present which should be available to all the Units from the factory premises to destination to provide the opportunity to sell their products in the neighbouring States.
Satish Koul pointed out that refund of 2% of the turnover with regard to Intra-state sale of finished products should be given to local industries to boost Intra-state sale which will incentivize investment in local Industrial sector and provide cushion to existing local Industry against the stiff competition in post UT status.
Koul further said all existing/ new industrial units should be exempted from Income Tax for next five years and thereafter, a slab of 15% should be introduced. He also pleaded that Industrial power tariff should be freezed for the next five years in view of bad condition of struggling industry in J&K.
BBIA president further demanded that 3 % interest subsidy should be provided for working capital and term loan for new/ existing industry for the next 10 years, which will not only boost the survival of existing units going for the substantial expansion but also will attract new Investment. He also opposed the Negative List Industries and suggested that all the tenders through e-procurement and Gem Portal which has been introduced by the Govt of India should include mandatory procurement of 30% of finished products from the local manufacturing units.
Sheikh Ashique, from Kashmir Chambers drawn the attention of Dr Jitendra Singh, in respect of losses suffered by trade and industrial sector of Kashmir. He also raised the issue of purchase policy through GeM Portal.
Dr Singh listened the issues highlighted and assured the delegation that Govt will take effective steps for the safe guard of existing Industrial Sector.
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