Excelsior Correspondent
JAMMU, Mar 6: Chamber of Commerce & Industry while expressing its reaction to the budget proposals presented in the Assembly today by the Finance Minister A R Rather pointed out that the efforts of the Government to reduce the fiscal deficit are praise worthy.
In a statement issued here today that Government has been able to accede to the requests made by Chamber in its pre-Budget Memorandum. Things like Havan Samigiri (packed or loose), google dhoop and idols have been exempted from VAT. durries, quilts, blanket covers, table cloths, Pillow cases and bed sheets etc. bringing under one slave of 5%, bringing CFL Lights under 5% VAT though demanded to exempt them totally from VAT, reduction of VAT on Saffron to 5 %, these are some of the items which have been given due consideration.
It said but at the same time Chamber bemoans that the items like Dry Fruits, Desi Ghee etc have not been given any consideration and their VAT rate remains 13.5% whereas in the adjoining States it is 5%. This difference diverts lot of trade of these items to the adjoining States. For developing Jammu and its surrounding areas more money needed to be earmarked, Rs. 333 crore is a very conservative some.
Chamber welcomed reduction of VAT from 13.5 % to 5% on food items served in Hotels etc as a gesture to boost this sector.
Chamber had made an appeal to exempt the vegetables and fresh fruits from the purview of Toll Tax but this has not been acceded. Exemption of Toll Tax in these items would definitely bring the rates of these essential items down and benefit the common man.
While reacting to the budget the Tax Bar Association said the Finance Minister Abdul Rahim Rather deserved to be congratulated on presenting consecutive fifth almost tax free budget in the State Legislature Assembly today.
In a statement issued here today he said State Government’s success in achieving targets fixed in the last budget also carries no less significance. Fiscal deficit has been restricted to 4.54% as against targeted ratio of 4.7%.
It said in his budget proposal FM has tried to consider the interest of almost all sections of society perhaps due to his extensive exercise conducted in his pre-budget meeting with them.
The unhappy aspect of the state’s financial status should be cause of concern for us all, it said. “For how long can we survive honorably while spending more on Salaries & Pensions; Purchase of Energy and other Capital Expenditures than our earnings”?
It said Mr. Rather has given lots of relief by extending for one more year the exemption on basic food items like atta, maida, suji, besan, pulses, peddy and rice etc. The exemption from VAT in respect of honey, tractors, power tillers and some other important agricultural items shall bring relief to the farmers. Further reducing tax rate on some of the important commodities like Saffron, CFLs; durries; quilts, blanket covers, table cloth & table covers, floor covering items etc shall not only relieve the consumers but also remove anomalies and confusions in the J&K VAT Act, 2005, it added.
Association of Industries (AOI) held a meeting under the Chairmanship of its president Balbir Kumar Gupta and discussed the budget proposed by Finance Minister AR Rather. AOI welcomed the extension of remission of VAT for Industry till March 2014. AOI also appreciated the constitution of Standing Task Force to address and resolve various issues being faced by the Industry.
Stone Crusher Association while criticizing the budget termed it a betrayal with them. Association president Vikram Randhawa said that budget has completely neglected them and the promise made with the Association that they will be relieved of 13.5 percent Entry Tax on spare parts in this budget has not been kept.
Javed Ahmed Tak, social activist said budget has neglected and discriminated persons with disability.
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