SRINAGAR: As the state government is approaching a new budget date on January 11, the Federation Chamber of Industries Kashmir (FCIK) is demanding that the disparity created by two SROs should be addressed at the earliest. They said some of the units are on the brinks of closure because pf the bag economic environment and the twin SROs are adding to their crisis.
“The government issued two SROs – No 519 and 521, under which they would be offering tax concessions in both CGST and SGST to select units operating in the state,” Mukhtar Yousuf, FCIK president said. “We are asking the government why it will not extend to these concessions – at least in the SGST, to the units operating in the state.” They said they are seeking full reimbursement on SGST on the full bill amount.
FCIK members had come to the Press Colony to protest against the discrimination by the state government. “How can the state prefer big business houses and not extend the same benefit to the small units which recruit more people and have suffered because of turmoil,” one member said. The concessions under the twin SROs is limited to only 282 units across the state and most of them are new and big. The centre offers 52 percent tax reimbursement on CGST and the state will contribute 48 percent.
Protesting fraternity said the concessions to a section of the industry will make the products of the smaller units unviable. “We are already facing a crisis because of situation and weather and some of us are yet to fully recover from the losses they suffered in September 2014 floods,” one FCIK member said. “Now the state is benefiting some and keep all others outside the loop thus hitting their viability.” They said the Chief Minister must spear some time and look into it well before the Finance Minister presents his budget for the next fiscal.
They said there is a wrong impression being given that the tax exemptions are extended to the entire industry. These concessions are for few units, they pointed out.