Excelsior Correspondent
SRINAGAR, Mar 6: The Kashmir Chamber of Commerce and Industry (KCCI) today reacted to the debate on the implementation of GST in the J&K and its impact on our economy.
Nasir Hamid Khan, senior vice president, KCCI stated that the Kashmir Chamber, along with a majority of other stakeholders, had opposed the implementation of the law primarily on the ground that would dilute the unique constitutional status and autonomy the State of Jammu and Kashmir enjoyed. The impact has crippled our handicrafts, tourism and industry sectors. The refunds to industries are lingered on for months together on one pretext or the other.
In it’s report given in 2018, the Parliamentary Standing Committee on Transport, Tourism and Culture had also raised red flags over the implementation of GST on Tourist related activities. It has recommended that it “must be reconsidered” and done in a cautious manner in order to ensure that the delicate state of tourism sector should not be adversely affected.
The report had further underlined the sensitive nature of our State and stated that the implementation of GST on Tourism would have “manifold effects, mostly negative, on the economy in the region’.
Earlier recommendations of the Parliamentary Standing Committee’s on the need for capping airfares has also been ignored by the Union Government. The KCCI has been demanding bringing air travel under the Essential Services Act of the State in view of the frequent closure of the only road link to Kashmir. Although the Ministry of Civil Aviation, under the UDAN Scheme for promotion of regional connectivity for making flying affordable, proposes 30 minute flight to cost only Rs 1,200, the citizens of our State are being forced to pay more than Rs 20,000 for the same distances.
The Government needs to sort out connectivity, infrastructural and taxation issues which are proving to be the biggest impediments in our growth.
As a result of the above factors, the stress on various sectors of our economy, especially tourism, handicrafts and industry, has reached a critical breaking point. There is a immediate need for all stakeholders to put in serious and effective efforts in a salvage operation.
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