MSMEs in J&K on verge of closure due to non-availability of fiscal incentives: FOIJ
Jammu, Jan 25 (KNN) The Federation of Industries Jammu (FoIJ) has said that Micro Small and Medium Enterprises (MSMEs) are on the verge of closure due to non- availability of state fiscal incentives.
During a meeting on Thursday, FoIJ raised serious concern towards the uncertainty prevailing in the mind of Micro and Small Scale industrial units of Jammu and Kashmir due to inadequate fiscal incentives granted in post GST Regime to around 7000 to 8000 Units resulting great resentment amongst the unit holders who are providing employment to local youths.
''It is worthwhile to mention here that the MSME units here in the State facing militancy since last 30 years, due to which there is a limited marketing avenue, higher production cost. The said reasons forced the state government to provide Value Added Tax (VAT) remission incentives to the such units from 2005 for their survival by selling their products within the State in Pre-GST Regime but the same incentives as per the state industrial policy 2002 diluted in Post GST Regime and only incentives of SGST refund on the value addition was given w.e.f 08-07-2017 to existing units resulting most of the units on the verge of closure ,'' Bari Brahmana Industries Association (BBIA) quoted FoIJ as saying.
''It is pertinent to mention here that after the implementation of GST w.e.f. 08-07-2017 and non-availability of state fiscal incentives to the new units and the units under substantial expansion resulting sharp decline in the Industrial Growth since last two and half years after the adoption of GST,'' it added.
The Federation members requested the authorities hold a threadbare discussions with the stake holders while finalising the state industrial promotion policy 2020 to provide state/central fiscal incentives to existing Units and New Units with the consultation of Government of India.