Srinagar, Nov 26: In the run up the design of J&K’s Budget 2022-23, PHD Chamber of Commerce & Industry, Kashmir chapter, has submitted its detailed recommendations to the J&K government reflecting its priorities for economic rejuvenation and sectoral budgetary allocations for the financial year 2022-23.
During the Pre-Budget Consultation Meeting held with Atal Duloo (IAS), Financial Commissioner (Finance) for the Budget 2022-23, a PHDCCI statement issued to Ziraat Times said that its recommendations incorporated suggestions and expectations received from its members through an internal consultation process.
Following are the detailed recommendations submitted by the chamber to the J&K government:
Banking & Taxation
✔ Advisory Committee for Taxation & Banking: We request to constitute an Advisory Committee for Taxation & Banking with due representation from Industry Chambers and Concerned UT government departments that will tackle the day today complaints and harassment issues of Trade and Commerce and will also act as bridge towards handholding and arbitration for bussiness fraternity of J&K.
✔ Amnesty in Arrears of VAT (Old Tax Regime) : We have been requesting from last two years for waive off the Amnesty tax amount of Arrears in the old tax regime (VAT), keeping in view the continuous business loss from last several years. The pending arrear amount is being surcharged with penalties and on actual it won`t be that much as would have been projected. The budget provision for these arrears would be a special relief for trading community of J&K.
✔ Record Keeping: Period of Preservation of Accounts/Records under Different laws is specified by each and every central department. Therefore we request that in J&K also there should be specific direction/ order in this regard.
✔ Banking Issue: There is need for handholding of young entrepreneurs and Industrial Projects by Bank Branches as it has been reported that the awareness about schemes and expertise in examining the proposal is very poor, the concerned staff for evaluation of projects lacks professionalism and expertise
✔ Interest Rates: It has been witnessed that apart from J&K Bank the other nationalized banks and Private Banks lend and negotiate on very discounted interest rates while in comparison to that the JK Bank don`t offer their existing customers best rates, and they are actually punish loyalty.
✔ GST Credit Scheme: To fund need based working capital requirement for Trading/ Service and Manufacturing activity there was a GST Credit Scheme in J&K Bank that needs to be re-introduced.
Tourism Including Hospitality Sector – Budget Provision for
✔ Industrial Power Tariff for Hotels
✔ GST Reimbursement like that of Manufacturing Units for Hospitality Sector ✔ Single Window Clearance and ease of doing bussiness for availing benefits under New Industrial Development Scheme.
✔ Release of Payment on account of Lodging & Boarding Charges provided to ULB/Panchayat Elections-2018 contesting candidates (Political Protectees) – In Hotels hired by the Divisional Commissioner, Kashmir.
✔ Release of Pending Payments of Various Hotels hired during Khelo India and under Covid Disaster Management.
✔ Budgetary provision for way-side amenities for tourists on the highways and Tourist Destinations.
✔ A budgetary provision needs to be made for Cable Car Projects at Shankeracharya Temple, Pahalgam, Dodpathri, and Sonmarg.
✔ Finalization of State Tourism policy with defined and least intervention/permissions/clearances for construction of Hotels, Guest House and Tourism amenities.
Handicraft, Handloom & Textiles
✔ To promote the handicraft industry the government should provide funds to conduct the national and international exhibitions from time to time, so as the artisans and traders can sell their products and get benefited.
✔ We suggest for Implementation of National Programme for Development of Handicraft and Handloom.
✔ For revival of Carpet Industry, the draft document prepared by stakeholder’s expert group needed to be implemented by state government in totality by making announcements in state budget-2022. On similar lines we suggest for framing of Expert group on Handicraft and Handloom Sector.
✔ Till the introduction of GST, Handicrafts (including Carpet), Handloom & Dry fruits in the state of J&K were by and large exempted from any Tax. However, with the introduction of GST, Handicrafts (including Carpet), and Handloom & Dry fruits have suffered a lot. It is requested that Handicrafts (including Carpet), Handloom & Dry fruits be reimbursed for GST. Even the recent revised GST rate of 5% for Handicrafts is burdensome.
✔ We demand for relief to the artisans, weavers, small entrepreneurs associated with cottage and small scale industries by waiving off the outstanding loans pending for two decades.
Industry and MSME Sector
Industrial Development Scheme 2021: We welcome the New Industrial development scheme which is unique in the country with plethora of incentives and in order to avail the benefits Under New Industrial Development Scheme we request following modifications that needs to be incorporated for making this Scheme more Inclusive:
✔ There should be provision for existing industry under new industrial development scheme and also provision should be made in UT Budget for existing industry.
✔ The relaxation in RBI guidelines and Norms for Existing Industry is must in order to avail the benefits under New Industrial Development Scheme as the whole scheme is credit Linked and the present balance Sheet and debit in books is making most of the existing businesses ineligible for this New Industrial Development Scheme.
✔ The Other Components like insurance that were earlier available under North Eastern Package needs to be included in the New Scheme or through UT Budget some provision may be made in this regard.
✔ There should be specific budget allocation for the revival and rehabilitation of sick units/MSME’s
✔ Recommendations needs to be made to keep entire Kashmir in Zone-B
✔ Production Linked Incentive for Certain products as announced by GOI needs to be extended to products produced /Manufactured in J&K
✔ The IT infrastructure and investment under IT sector needs to be regularized with involvement of local IT companies and establishments and it should be ensured that the local IT manpower and existing private infrastructure should be engaged and will be connected with Corporate IT firms that will be investing in J&K.
✔ We also request for provision of Freight subsidy on international import of High density planting material to make it economically viable to farmer community.