Mahajan highlighted the various issues related to the Industrial Sector and requested the State Government to resolve the same in the Budget of 2017-18.
Lalit Mahajan, Chairman Federation of Industries, Jammu, who led a Delegation of Federation of Industries, presented a Pre-Budget Memorandum to Haseeb A. Drabu, Finance Minister, J&K, during the Pre-Budget discussions. Mahajan highlighted the various issues related to the Industrial Sector and requested the State Government to resolve the same in the Budget of 2017-18, as per the reports by KNN.
Certain exemptions have been demanded to the state government. Jammu based micro, small and medium enterprises (MSMEs) have asked to exempt them in upcoming budget on VAT, Toll Tax, Service Tax on the Employment of Labour through Contractors, Work Tax on Job Work. Some of the key demands made by the MSMEs were:
1. Fiscal Incentives to Industrial Sector under GST Regime and Extension of VAT and Toll Tax Exemption to Industrial Sector till the adoption of GST
2. Extension of Cash Less System of VAT Remission through SICOP after 31-3-2017 till the adoption of GST
3. Further, the sector demanded removal of items from the negative list for industrial sector for VAT Remission in respect of Edible Oil, Roasted Ground Nuts, Floated Glass, Timber Products and other items being manufactured by the industrial sector.
4. Removal of items from Negative List of SRO 22 of 2004 dated 31-01-2004 for exemption of Additional Toll Tax on Raw Materials for food processing Industries Salt/Edible Oil/Dry Milk Powder, Cement Clinkers & Coal/Pet Coke/HSD/Furnace Oil, as reported by KNN.
5. The MSMEs should be given Price/Purchase Preference for the purchases by Government Departments and PSUs, demanded the industry body.
6. The demand also included, Amnesty Scheme by P.D.D for Industrial Sector; sufficient Staff at Lakhanpur Checkpost for 24×7 clearance of Industrial Goods; issue of Procedure/Guidelines for the Self Certification Mechanism for Annual Assessment of Raw Material/ Finished Goods for Toll Tax Exemption as per the New Industrial Policy 2016.
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7. Extention of additional Toll Tax Exemption on plant & machinery to Industrial Units on Substantial Expansion was also urged by the industry to state government.
8. The industry also sought for permission to Import the Spare Parts for Machinery on self-certification by Medium and Large Scale Units.
9. With regards to the service tax, FOIJ requested the government to exempt the sector from the preview of Service Tax on the Employment of Labour through Contractors and also exempt the units for Work Tax on Job Work.
10. The power tariff hike should be freezed for 5 years and the Delayed Payment Act should be implemented at the earliest, demanded FOIJ.