Extend North-Eastern incentives to JK, JKFI

Written by:
Subscribe to Oneindia News

Srinagar, Apr 1: Requesting the Centre to extend package of incentives given to the North Eastern states to Jammu and Kashmir, the J&K Federation of Industries (JKFI) said the fiscal package granted to the state had not been able to attract major investment.

Seeking the intervention of the People's Democratic Party (PDP) patron Mufti Mohammad Sayeed, the JKFI said the recent decision of centre to withdraw the excise exemption was discriminatory.

A delegation of JKFI led by Dr Mubeen Shah and Shakeel Qalander called on Mr Mufti and apprised him about the centre's proposal to withdraw the excise exemption by way of curtailing refund of central excise duty paid in cash on the goods manufactured in the notified areas of Jammu and Kashmir.

Dr Shah said that the federation welcomes the outside investment from industrial houses, but the fiscal package granted to Jammu and Kashmir has not been able to attract major investment, therefore it was necessary that the package of incentives extended recently to the North Eastern state from April 2007 should also be extended to the state.

The delegation requested Sayeed to have the central package of incentives made applicable to the existing industrial units (prior to June 14, 2002) without the substantial expansion clause.

They said the reduction of central excise duty on Pharmaceuticals Industry from 16 per cent to eight per cent has rendered the Pharmaceutical units of Jammu and Kashmir enviable adding that this industry provides employment to more than 8000 highly technical qualified skilled educated youth and also supporting local ancillary units.

The delegation proposed that the incentive available to an exporting unit (refund of Central Value Added Tax Credit and PLA) should be extended to the Pharmaceutical industry of Jammu and Kashmir.

They also demanded withdrawal of 100 per cent income tax exemption for Jammu and Kashmir industrial units and central excise exemption withdrawn for eligible units directly exporting from Jammu and Kashmir.

The delegation also expressed its concern over the ministry of finance's proposal of withdrawing or diluting incentives available to industries being set up under the new package of incentives in Jammu and Kashmir.

Mr Sayeed assured the delegation that he would take up all the issues with the top brass of the government at central and state level.


Please Wait while comments are loading...