Flight of capital from the state will be checked effectively: Rather

Pre-Budget Discussion with Trade, Industry-Jammu 

JAMMU:- The Minister for Finance and Ladakh Affairs, Mr. A.R. Rather has said that the State Government, in order to address the concerns of Trade and Industry, as also to safe-guard the revenue interests of the State, will take all possible measures to check the flight of capital due to diversion of trade. The Minister has assured the Trade and Industry that violation of guidelines by some States, in this regard, will be forcefully put before the Empowered Committee of State Finance Ministers in its forthcoming meeting.

“Diversion of trade from our State, due to variation in VAT rates on certain commodities vis-à-vis the rates in the neighboring States, will not be allowed, as it leads to loss of revenue to our State, besides hampering the interests of the trade and Industry”, Mr. Rather said adding that Violation of guidelines in this regard by the neighboring States shall emphatically be brought to the notice of the Empowered Committee of State Finance Ministers.
Mr. Rather was responding to the pleas of the members of the Trade and Industry during the course of pre-budget discussions which started at Jammu today.
Expressing Government’s determination to harness the State’s vast Hydel Power Potential, Mr. Rather said that the Cabinet Sub Committee (CSC) has already recommended taking back Uri and Salal Power Projects from NHPC, in the first phase, adding that the Centre would be impressed upon to concede this demand as early as possible. He said that burgeoning deficit in the Power sector is the biggest challenge confronting the State saying that the power import bill has touched an all time high of Rs.3000 Cr. against the revenue of Rs.800-900 Crore. “How can a system be run under such conditions”, Mr. Rather questioned and said that situations like this are the cause for the budget deficit.
Responding to the issue of unemployment raised during Pre- Budget discussions Mr. Rather said that self-employment and entrepreneurship development has been given thrust, in the first of its kind employment policy, SKEWPY adding that the availability of money shall be no constraint in this regard.
After a series of meetings in the Kashmir Valley for the last three days, Mr. Rather today met Chamber of Commerce & Industry Jammu, Industrial Associations of IGC Samba, Gangyal, Bari Brhamana, and Kathua, Traders and Retailers Federation, Jammu and Hoteliers Association, Jammu
Economic Advisor to the Govt. Mr. Jalil Ahmad Khan, Principal/Secretary Finance, Mr. Iqbal Khandey, Commissioner Commercial Taxes, Mr. Gazzanfar Hussain, Excise Commissioner, Mrs. Vineeta Gupta, Additional Commissioner Commercial Taxes, Mr. R.K. Koul, DC Commercial Taxes (HQ), Mr. Showkat Hussain and representatives of Trade and Industry, were present in the meeting.
Observing that holding pre-budget discussions with the cross section of people, including trade and Industry, have proved very fruitful as it serves the twin purpose of having an insight into the view points of the stake holders, their genuine feeling and problems as well as improving the shortcomings, if any, at the administrative level, Mr. Rather said that the basic objective behind this exercise was to involve the people in formulating a people friendly vision document, detailing the political, economic and social priorities of the Government for the coming year for ensuring better growth, well being and all round development of the people of the State. He said that these interactions with the stakeholders also facilitate to evolve better policies for the progress of our economy and the strategy to strengthen it further within the available resources. He said, all the useful, beneficial and realistic suggestions at the pre-budget sessions would be considered on merits while preparing the next year’s annual budget.
Reiterating Government’s commitment towards safeguarding interests of the Trade and Industry, Mr. Rather eulogized its contribution in the process of economic growth and socio-economic transformation of the state. He said the Government was committed for the cordial relations with this important segment of the society and assured that no government official would be allowed to unnecessary harass any trader or citizen. He reaffirmed that equal opportunities of growth and development would be given to the traders and industrialists of all the three regions of the State viz Jammu, Kashmir and Ladakh without any discrimination. “The officers and field agencies have been enjoined upon to ensure transparency, accountability and goodwill while dealing with them”, Mr. Rather added.
The main issues and concerns raised by the members of trade and Industry included VAT exemption on Packing material of walnuts, almonds and its kernels, bringing convas cloth tarpal, CFL (energy savers) in Zero% tax category, revision in the stamp duty, formulation of a Trade policy, continuation VAT remission to the Industry, VAT remission to Oil Industry, Tax holiday for tourism Industry, transfer of Land leased out to the unit holders in different Industrial Estates under Roshni Act. etc.
The president, Chamber of Commerce and Industry, Jammu Mr. Y.V.Sharma, President Industrial Association, Bari Brhamana Mr. Suri, President, Industrial Association, Gangyal, Mr. T.S. Reen, President Industrial Association, Kathua, Mr. Davinder Verma, President Industrial Association, Samba, Mr. Rishi, president, Traders and Retailers Federation, Jammu Mr. Yashpaul Gupta and President Hoteliers Associations, Jammu Mr. Inderjeet Khajuria presented charters of demands highlighting various issues pertaining to the concerned fields. (KMW News)