Srinagar, July 20: The Kashmir Chamber of Commerce and Industry (KCCI) and the State Taxes Department held a meeting on Wednesday to discuss tax-related issues facing the local trade community.
The KCCI team, led by Senior Vice President Ashaq Shangloo, presented case studies on the ground challenges faced by businesses in complying with existing tax laws. Dr. Reshmi Singh, Commissioner Taxes, acknowledged the importance of a transparent and business-friendly tax environment and assured to resolve the issues within her domain, a statement issued by KCCI to Ziraat Times said.
The KCCI team also discussed the matter of the “unwarranted GST rate of 12% on Shawls and other handicraft items.” The Commissioner’s attention was drawn to the approximately 80% labor component involved in the production of handicraft items and taxing the product with such a high labor component at 12% has not only resulted in reduced production but rendered a large number of weavers/artisans jobless. The Commissioner advised KCCI to make a case for submission through proper channels and consideration by the GST Council under whose jurisdiction the matter falls.
Both sides agreed on the importance of maintaining regular communication and collaboration for resolution of issues, establishing a dedicated task force to analyze the identified issues, promote a healthy business ecosystem, organize workshops, and promote a positive sentiment among trade, commerce, and businesses, the statement added.
The KCCI Senior Vice President thanked Dr. Reshmi Singh and her team for their positive approach and willingness to resolve the issues of the trading community.
“We had a constructive meeting with the Taxes Department and discussed the various tax-related issues facing the local trade community,” said KCCI Senior Vice President Ashaq Shangloo. “We appreciate the Commissioner’s positive approach and willingness to resolve these issues.”
