FCIK terms GST law a ‘Tsunami’ for local industry, demands roll back

FCIK terms GST law a ‘Tsunami’ for local industry, demands roll back

SRINAGAR: Terming the GST Act as ‘tsunami’ for the developing industry in the valley, the Fedetation Chamber of Industries Kashmir (FCIK) has demanded its immediate roll back.
In an executive council meeting held under the chairmanship of speaker Syed Fazal Illahi, the members resolved to work in tandem with the newly formed Jammu and Kashmir Coordination Committee (JKCC) in order to mount pressure on the state government for the rollback of these tax laws clandestinely extended to the state.
The members observed that extension of this 47th amendment was yet another assualt on the special status enjoyed by the state under Article 370.
Discussing the papers written by constitutional experts and published in various newspapers, the members observed that it was clear that affording concurrance to the GoI law is a big mistake on the part of the state government as the action had eclipsed its fiscal powers under section 5 of the J&K constitution.
While discussing the impact of GST on local industry working under unfavourable conditions in a disturbed state, the members said that it was impossible for them to directly come under competition with their counterparts in other states.
Participating in the discussion, the President FCIK Er. Mukhtar Yousuf conveyed his doubts on the confusion created by the state government both in the constitutional as well as technical aspects of GST.
Although the government is on record to have assured of reimbursement of tax to the industry, yet there was lot of confusion over it, he said adding that the tax rebate can no more be used as cost equaliser by passing on the benefit to the consumers. Why should the consumer purchase goods produced by local industry at a higher cost when the imported ones would be available to him at much lower cost. The President said that the poultry and handicrafts industry may be wiped out in the new tax regime.
The meeting also discussed other issues confronting normal functioning of the industry and took decisions for their redressal.

 

 

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