Association of Kashmir-based industrialists on Saturday threatened to lock their units incase the government decides to abolish toll tax at Lakhanpur and other state entry points.
Addressinga press conference at Kashmir Press Club here, industrial associations underthe banner of Federation Chambers of Industries Kashmir (FCIK) said any move toabolish existing toll tax will “destroy” local industry by making ituncompetitive.
“Atthe time of GST implementation, the then PDP-BJP dispensation promised us thattoll won’t be touched. Even the industrial policy of the state puts us at parwith rest of the country. By abolishing toll government is opening floodgatesfor outside industry and putting us at a disadvantage,” said Javed Bhat,president, Industrial Estate, Sopore.
Highlightingthat if toll tax at Lakhanpur is done away with, 500 units across the Valleywill be directly hit, Bhat said this was an attempt to “crush economy” of theValley and the state, adding that atleast 200 units will have to wind-upproduction here if toll tax is done away with.
“Educatedyouth opened industry here because we were promised to be given incentives. Weare a landlocked state and industry runs on incentives, moreover toll tax has asignificance as it provide Rs 1000 crore annual revenue to the kitty of thestate,” said Bhat.
Hesaid levy of toll benefits local industry such as sectors related to cottonproduction, cement, steel fabrication, poultry adding that abolishing toll willhit competitiveness of local products.
QaisarShahid, senior vice-president, Khunmoh Industrial Estate association saidabolishing toll will pave way for “both regulated and unregulated” goods fromoutside and even encourage black-marketing.
“Weurge the committee set up by Governor SP Malik that our plea be addressed andtoll should not be abolished. 22 units of cotton at Zainakote will have to shutshop if toll tax is abolished,” Shahid said. He said J&K holds a specialstatus and removal of toll tax will be yet another step towards erosion ofspecial economic status to the state.”