Srinagar, Nov 25: Federation Chamber of Industries Kashmir (FCIK) held a Pre-Budget discussion with J&K’s Additional Chief Secretary Finance Atal Dullo. In a statement to Ziraat Times, FCIK Secretary General Ovees Qadir Jamie said that the chamber had put up various demands to the government to rejuvenate the beleaguered economy and put it on track.
President FCIK Shahid Kamli put forth various demands which includes marketing support to the local industry “as the industry is heading towards sickness without marketing support”. He said that the 25% of the allocated budget of the department should be kept for purchase from Local MSMEs.
“Due payments to the enterprises are not being made in time resulting in huge losses incurred by them besides undermining there reputation with creditors and bankers. Further, the payment of works done by units previously without Adminstartive/ Technical Sanction should be disbursed”, Mr Kamili said during the meeting, adding that the enterprises have dried up their working capital by paying off towards their establishment cost during the lockdowns and, therefore, requires support from the government to overcome their liquidity crunch.
Further, Mr Kamili said that the clean slate for VAT regime should be provided as the benefits of this tax exemption was being extended by the industry and no tax collected from them. Before introduction of GST regime, industry was promised of a clean slate for VAT regime.
During the meeting, FCIK Secretary General Ovees Qadir Jamie said the previous budget for financial year 2021-22 of Rs 1,08,621 crores has a gap in actual disbursement to the departments. “Till October, as many as 25 departments of the Union Territory received just Rs 1,809 crore, which is less than 10 per cent of the CSS allocation of Rs 18,527 crore for 2021-22″, he added.
Mr Jamie said that a mechanism for the reimbursement of GST should be made, so the reimbursement tax amount need not be deposited in cash rather should be set off to the tune of reimbursement amount as there is procedural wrangling in getting reimbursement.
Jamie added that the allocation of funds to the existing industry should be made on same pattern as provided in Central Industrial Scheme to new units, so the existing industry can enjoy similar benefits as provided to new upcoming industrial units. Further, Mr Jamie said the compensation of business losses accrued in last few should be provided, Interest subvention of 5% for five years should be provided, Repo Linked Interest rates should be implied to all accounts & Infusing liquidity by rolling out ECLGS 3.0.
Sr. Vice President Mr Ghulam Jelani said that in pre GST period industry was on 0% tax as tax remission was provided in VAT regime, now GST has been levied on the industry. “We demand that 100% SGST reimbursement to the industries so as to make them competitive with outside market”, he said.
FCIK also demanded the waiver of Electricity Demand charges to the Industrial units, Business Interruption Insurance, Support to stressed & sick units, Contribution by government in Provident fund & Freight subsidy.