Excelsior Correspondent
JAMMU, Feb 13: The Jammu and Kashmir Budget Proposals for the year 2014-15, have invited mixed response from business and industrial bodies.
Chamber of Commerce and Industry has welcomed the extension of Tourism incentives, continuation of VAT remission and exemption for another year, enhancement of audit limit but expressed its dismay over no redressal of its submission with regard to rationalization of VAT rates on various items and other issues.
“Our submission with regard to rationalization of VAT rates on various items like Desi Ghee, dry fruits, milk powder, diesel, etc to bring them at par with the rates prevalent in neighbouring State and reduction of VAT on goods at CSD canteens have not been addressed. Because of huge difference in VAT rates, there is diversion of trade to the neighbouring State,” said the CCI president Y V Sharma in a statement.
He also lamented that the entrepreneurs’ demand for granting free hold right to the industrial pieces of land allotted to them for business purposes was also not settled. Further, he added, the announcement of VAT reduction on Shawls to 5 percent is also ambiguous as this item already comes under `Made-ups’ category on which there is no VAT.
‘In view of rising inflation and escalation of prices of goods, increase of threshold limit from Rs 7.5 lakh to 10 lakh is inadequate and should be increased to Rs 25 lakh while TOT limit should also be increased to at least Rs 60 lakh for the same reason, Mr Sharma said.
Further, the CCI observed, the provisions for other social and welfare sectors like Health, Education, Agriculture should also be increased in view of the importance of these sectors for better quality of life of the people.
Association of Industries, Gangyal, has expressed its disappointment with the Budget Proposals notwithstanding VAT remission to the industry for another year, cashless system of VAT remission on purchase of raw material from SICOP and increase in the audit limit to Rs 1 crore.
The Government did not consider many issues, suggested by the Association of Industries, like reduction of electricity, conferment of free hold rights on industrial unit holders, etc, observed the Association during a meeting held under the chairmanship of its president Balbir Gupta.
J&K Coordination Committee of Trade Unions (JKCCTU) while reacting over the budget termed it an eye wash. The president of the Committee Mohammed Maqbool Ganai said there is double digit inflation leading to over 12 percent price rise due to which the real wages of working class have gone down. He said the working class was expecting relief from Government in the budget but there hopes were belied.
The Government has failed to revise the minimum wages of the working class. Instead of reviving the State Public Sector, the Government gave thrust on further disinvestment. Moreover no regularization and wage policy was announced in the budget, he added.
Fazal Hussian Khan chairman Panchayat Association while criticising the budget said that it has failed to offer any thing to Panchs and Sarpanchs whose number is 36,000. He said Rs 46 crore kept for them in budget is a meager amount and this way the Government has cheated them. Nothing was said in the budget about enhancement of remuneration of Panchs and Sarpanchs in the State though they had pinned high hopes in Finance Minister.
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