Valley traders seek debate on new tax regime

Despite assurance from the government that the Goods and Services Tax (GST) will not impact J&K’s special status, the Kashmir valley’s business community and tourism players are seeking a thorough debate before the new tax regime gets implemented.
Besides debating the ramifications of the act over the state’s own financial authority, businessmen want to know the fate of the special tax concessions enjoyed by J&K on account of being a tourist destination.
“We have been getting special benefits such as exemption of service tax for the hotel industry. VAT, too, was reduced from 13.5 to 5 per cent. This was possible only when J&K had its own laws. Therefore, a wide ranging debate is needed to discuss several concerns before the GST is implemented,” said Kashmir Chamber of Commerce and Industry president Mushtaq Ahmad Wani.
However, Wani said any tax slab was acceptable to them as long as it did not have any impact on Article 370 that grants special status to J&K.
The government has already called for a special Assembly session on June 17 to discuss the extension of the 101st amendment of the Constitution to J&K before the GST Bill is passed.
On the other hand, the NC has called for an all-party meet and deferment of the special Assembly session on apprehensions that the ‘possible and seemingly imminent extension of the amendment 101 of the Constitution of India to the state and said such a plan would have wider and irreversibly adverse ramifications on the state’s fiscal autonomy’.
Meanwhile, Kashmir Economic Alliance chief spokesperson and hotelier Siraj Ahmad said the extension of the GST in J&K was going to be a crucial decision vis-à-vis its ramifications over the state’s own financial authority and taxation system.