JAMMU, Jan 23: Federation of Industries, Jammu (FoIJ) has said that micro and small scale sector has reached at the verge of closure in Jammu and Kashmir.
In a meeting of the Federation held under the chairmanship of Rattan Dogra in presence of Lalit Mahajan, Jatinder Aul, Ajit Lal Bawa, Vijay Aggarwal, Deepak Dhewan, Co-Chairman FoIJ, Viraaj Malhotra secretary general and other Executive Committee members of Federation of Industries Jammu, the members raised serious concern towards the uncertainty prevailing in the mind of Micro and Small Scale Industrial unit holders of J&K due to inadequate fiscal incentives granted in post GST regime to around 7000 to 8000 units, leading to great resentment amongst the unit holders who are providing employment to local youth.
It is worthwhile to mention here that the Micro & Small Scale Units set up by the sons of the soil working in the State facing militancy since last 30 years, limited marketing avenue, higher production cost and keeping in mind the above facts, the State Govt provided VAT remission Incentives to the such Units from 2005 for their survival by selling their products within the State in Pre-GST regime but the same Incentives as per the State Industrial Policy 2002 diluted in Post GST Regime and only Incentives of SGST Refund on the value addition was given w.e.f 08-07-2017 to existing units resulting most of the Units on the verge of closure which may be resulting into mass scale retrenchment of Local Industrial Workers.
It is pertinent to mention here that after the implementation of GST w.e.f. 08-07-2017 & non availability of State Fiscal Incentives to the new units and the units under substantial Expansion resulting sharp decline in the Industrial Growth since last two & half years after the adoption of GST.
The Federation members requested the authorities while finalizing the State Industrial Promotion Policy 2020 and hold a threadbare discussions with the stake holders to provide State/Central Fiscal Incentives to Existing units and new units with the consultation of Govt of India.