Jammu, Jan 1 (KNN) The Micro, Small and Medium Enterprises (MSMEs) opposed the J&K government's decision to abolish toll tax across Jammu and Kashmir from January 1, 2020.

In a meeting held here on Tuesday, Bari Brahmana Industries Association (BBIA), President Lalit Mahajan, raised serious concern over the order issued by J&K Finance Department regarding cease of toll tax from January 1, 2020 and termed it an attempt to destroy industrial sector who are working despite all odds since last 30 years.

''They are facing stiff competition from manufacturers/ traders from outside J&K due to additional cost of transportation of raw materials, location disadvantages, shallow market etc. The decision will also allow import/export of unaccounted goods in/from here, which may result in huge financial loss to State exchequer as well as to industrial sector of J&K,'' Mahajan asserted.

Mahajan further said that this step will prove as death-nail for industrial sector of Jammu and Kashmir and industrial sector here will be the worst sufferer of the decision.

The association members also appealed to the Lt Governor, Girish Chandra Murmu for continuation of toll tax on industrial products being manufactured by local industrial units.

Jammu and Kashmir administration on Tuesday announced abolition of toll posts, including at Lakhanpur along Jammu-Pathankot highway, a move that will lead to a loss of Rs 1,500 crore to the exchequer annually.

The decision of the abolishment of the toll tax from the New Year was welcomed by traders while industrialists termed the withdrawal of toll tax as a "Black Death Warrant for J&K Industrial Sector".

Announcing the decision at a press conference here, Principal Secretary, planning, monitoring and development Rohit Kansal said the government has decided to set up a High Powered Committee under the chairmanship of Advisor KK Sharma to interact with various stakeholders and to suggest measures to improve the competitiveness of local industry.

"The administration has decided to abolish toll tax at Lakhanpur and all other posts including at Railway Stations and Airports with effect from January 1, 2020. The abolition of the toll tax will lead to an annual loss of around Rs 1,500 crore to the UT coffers annually," he said.

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