Jammu, Dec 20 (KNN) The Jammu based micro, small and medium enterprises (MSMEs) have asked the state government to give certain exemptions to them  on VAT, Toll Tax, Service Tax on the Employment of Labour through Contractors, Work Tax on Job Work in the upcoming Budget.

A Delegation of Federation of Industries, Jammu led by Lalit Mahajan, Chairman Federation of Industries, Jammu, presented a Pre-Budget Memorandum to Haseeb A. Drabu, Finance Minister, J&K, during the Pre-Budget discussions held here.

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.

Some of the key demands made by the MSMEs included - Fiscal Incentives to Industrial Sector under GST Regime; Extension of VAT and Toll Tax Exemption to Industrial Sector till the adoption of GST; Extension of Cash Less System of VAT Remission through SICOP after 31-3-2017 till the adoption of GST.

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.

FOIJ since long has been demanding 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.

The MSMEs should be given Price/Purchase Preference for the purchases by Government Departments and PSUs, demanded the industry body.

Among other demands were - Amnesty Scheme by P.D.D for Industrial Sector; sufficient Staff at Lakhanpur Checkpost for 24x7 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.

The industry urged the state government to extend additional Toll Tax Exemption on plant & machinery to Industrial Units on Substantial Expansion and sought for permission to Import the Spare Parts for Machinery on self-certification by Medium and Large Scale Units.

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.

The power tariff hike should be freezed for 5 years and the Delayed Payment Act should be implemented at the earliest, demanded FOIJ.

Drabu gave a patient hearing in respect of the issues raised by the Federation and assured the delegation to resolve the issues on priority basis, said Mahajan. (KNN Bureau)