J&K industry seeks restoration of IT exemption

Jammu, Dec 31 (KNN) Owing to the decreasing investment, especially in the MSME sector, in J&K due to locational and geographical disadvantages, the Chamber of Commerce and Industries in Jammu has sought for income tax exemption for another 10 years and restoration of some incentives for the industry.
 
 
“Income Tax exemption has been discontinued from April, 2012 and after its discontinuation, the response for the investment in our state is very low and in the last 21 months hardly any investment have come in J&K State,” the Industry body said in a statement.
 
 
“We therefore, request that income tax exemption should be given for another 10 years for both old as well as new industrial units,” said President, CCI, Y V Sharma. 
 
 
CCI made this demand during an interactive session with Secretary MSME, Government of India; Madhav Lal at Chamber House here yesterday and also discussed various issues related to the industrial development in the J&K state.
 
 
 “J&K State is at the tail end of the country and due to locational and geographical disadvantages our state is lagging behind in industry besides being the land locked having hostile neighbour like Pakistan and China militancy affected state with very little employment opportunities needs special care and attention as nobody is ready to invest in our state unless some attractive incentives are available,” Sharma added.
 
 
The Central Excise incentives declared in 2002 were partially withdrawn midway which resulted into confidence shattering of investors in Industrial sector.
 
 
“We request the government to restore the central excise which was partially withdrawn,” the chamber chief demanded.
 
 
CCI also called for extending the central package of incentives which expired in June 2012 in order to help the industry to avail this scheme.
 
 
“The central package of incentives extended for five years but in fact the announcement was made in September 2013 which left very little time to avail these incentives.
 
“We request that these incentives should be extended for at least 10 years,” Sharma said.
 
 
Further, CCI sought extension of the interest subsidy on substantial expansion to the existing units, establishment of new industrial estates adjoining Jammu, and easy credit flow to the MSME sector.
 
 
“The Credit flow to MSME by the nationalize banks is very poor and discouraging. They are always shy of extending the credit flow to MSME sector.
“The banks which are not fulfilling these conditions must be penalized,” the industry body demanded.
 
“Khasra neutrality has to be done away. The whole state of J&K should be considered as industrial backward,” the release added.
 
 
While speaking on the occasion, MSME Secretary said that all possible steps will be taken to redress the points raised into today’s meeting.